}
to criticism, however, if we do nothing to develop
democratic local government institutions and to speed the
pace of improvement of labour conditions.
Possibilities in
both fields are now being examined. Because of its
geographical position, and its predominantly Chinese
population, Hong Kong must always remain a potential danger
spot. This danger is all the greater at present due to the
conflict in Vietnam and political instability within China.
Despite this and the Chinese behaviour towards Macao conditions
within the Colony remain reassuringly stable.
(b) Gibraltar. A separate paper is being prepared.
(c) Fiji. Whether or not Fiji, with a population of almost
half a million, can contemplate independence is as yet
uncertain. By most criteria already applied elsewhere, it
could. But the tensions between the Fijians and the Indian
community would have to be solved first: and this may well
take a long time.
(d)
Ascension Island and the British Indian Ocean Territory.
These are to be used for defence purposes. The ir
inhabitants will be those working on defence projects.
Falkland Islands. A separate paper will shortly be
(e)
circulated.
୨ The remaining dependencies
9.
These are the rest of what were formerly termed "the
Colonies". They are: the British Solomon Islands
Protectorate, the Gilbert and Ellice Islands, the Anglo-
French condominium of the New Hebrides, and Pitcairn in
the Pacific; Bahamas, Bermuda, British Virgin Islands,
Cayman Islands, Montserrat and the Turks and Caicos Islands
in the Caribbean and North Atlantic; and St. Helena and
Seychelles, respectively west and east of Africa. It is
convenient to consider them in three categories.
10. Bahamas and Bermuda
Here there is prosperity, based largely upon tourist
development. They are not dependent upon us for economic
CONFIDENTIAL
/assistance.
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