TNAG-0596-FCO40-743-Policy-of-HM-Government-towards-remaining-Dependent-Territor-1977 — Page 8

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

(17865) Dd.145178 400m 5/73 G.W.B.Ltd. Gp.863

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In the case of the Banabans and Ocean

Island, the Hon Member has expressed strong views

on this subject and it will come as no surprise

to him that I do not share them.

My Rt Hon Friend made a full statement to

the House on 27 May setting out what Her Majesty's

Government consider a generous financial provision

for the Banabans and suggesting the sort of a

compromise formula for a constitutional settlement.

Those proposals were the result of long and careful

consideration. We know they do not go as far towards

separation as the Banabans wish but we have said

that we do not think separation is the right

answer. There is a agenuine, legitimate conflict

of interest. It is for this reason that we think

a compromise is necessary and one along the lines

we indicated would seem to us to be fair and

honourable for all concerned. We think it could

meet all of the practical concerns the Banabans

have in relation to Ocean Island.

My Rt Hon Friend made it clear that no

final decision would be taken before the pre-

Independence Constitutional Conference and that

the Banabans would be represented at that

Conference and free to argue their case there.

It is important to use the intervening period for

constructive discussions of the provisions and

the guarantees that would make a reality of the autonomous position for Ocean Island. We are in

direct touch with the Gilberts' Government and with

the Banaban leaders and I have reason to hope we may so

soon be able to move forward to direct and

/constructive

constructive talks between the two sides.

The $10 million ex gratia payment is in

our view generous and is the maximum sum available.

We believe, as we have said, that the capital

sum should be preserved.

This view is shared by

the Australian and New Zealand Governments. We

have no wish to appear paternalistic about the

establishment and administration of the fund and

we entirely accept the Rabi Council's wish to be

closely concerned in both establishment and

administration. We believe arrangements can be

worked out with the Rabi Council which will be

acceptable to all concerned.

It is my hope that we are at last in a

position where at least there is movement, where

there is discussion and where there is a much

better understanding on all sides. If we are

to reach a final solution, it will be on this

basis and the British Government will do

everything possible to promote a solution that is

fair and honourable to all concerned.

The Hon Member has attacked Mr Posnett's

Report on the subject of the Banabans and Ocean

Island. I am aware that the Report does not support

the views on this subject which the Hon Member

holds. But those views are not unanimous in this

House. My Rt Hon Friend found Mr Posnett's report

of considerable value in his attempts to arrive at a

fair and honourable settlement. There were of course many

other factors to take into account and in particular

my Rt Hon and Noble Friend has had discussions with

all of the parties concerned, including the Banaban

leaders.

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FIND POINTS [IF REQUIRED]

DSR 11C

6. We are encouraging all our dependent territories, whatever their ultimate status may be, to co-operate with other countries and territories in their geographical

regions.

iroiva

Kon 4

7. Hong Kong, which I should also mention, is a special case. We will continue to administer the territory in

the interests of those who live there. We have welcomed the Hong Kong Government's plans for further progress in labour, social and allied fields and are satisfied that the Hong Kong Government are making good progress in dealing with their social and other problems.

8. Finally, a word about aid. We shall continue to

provide development, and where necessary, budgetary aid

before and after independence, according to the territories'

needs and our resources and priorities.

D 107991 400,000 7/76 904 953

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