TNAG-0596-FCO40-743-Policy-of-HM-Government-towards-remaining-Dependent-Territor-1977 — Page 27

BANABANS/OCEAN ISLAND

I respect the strong views the hon Member has on this subject and it will come as no surprise to him that I do not entirely share them. My right hon Friend made a full statement to the House on 27 May setting out what HMG consider a generous financial provision for the Banabans and suggesting the sort of compromise

formula for a constitutional settlement which would be fair and

honourable for all the parties concerned We are in direct touch with the Gilberts' Government and with the Banaban leaders

and I have reason to hope that we may soon be able to move

forward to direct and constructive talks between the two sides.

I am convinced that this is the best route to follow

Follow

(i) HMG is being paternalistic in attaching strings to the

ex-gratia payment

We have made it clear that no unreasonable strings will be attached to this payment and none of the three Governments concerned wishes to be involved in the administration of the Fund. Our

concern is to see the Fund established on a responsible basis

and to offer what advice we can on the best way to do this.

(ii) There are many precedents for separation. Why refuse it to

Ocean Island?

None of the precedents used in this argument is on all fours with the case of Ocean Island where separation is resisted by

the central Government.