TNAG-0597-FCO40-744-Future-of-Dependent-Territories-territorial-studies-1977 — Page 83

GIBRALTAR

GILBERT ISLANDS

HONG KONG

MONTSERRAT

CONFIDENTIAL

3 -

Present Constitution and Prospects for Independence

No change has been made in the Ministerial form of Government introduced in 1969 in the context of the Spanish claim to sovereignty. External affairs, Defence and Internal Security are reserved to the Governor together with the right to intervene in financial, economic and other matters. In practice he has consulted Ministers on most issues.

Independence is not an option since, under the Treat of Utrecht, Spain must be given first refusal if Britain should give up sovereignty. The Spanish border remains closed but the Spanish Government are coming to appreciate the necessity, if any sort of settlement is ultimately to be reached, for the removal of restrictions, and winning the confidence of the Gibraltarian people in respect of whom the British Government is pledged not to agree to any transfer of sovereignty contrary to their freely expressed wishes. Progress is likely to be slow owing to the constraints of the internal political situations in Spain and Gibraltar.

Ministerial Constitution introduced 1974. Internal self- government 1 January 1977. Independence Conference to follow general election in 1977/78.

No constitutional progress is possible and independence is not an option.

Advanced Ministerial Constitution in force since 1960. The people show no desire for independence and a Visiting UN Mission was assured in 1975 that they were happy as they were. Their Membership of CARICOM and of the Associated State Council of Ministers may spur them by example.

Considerations affecting Aid Policy

The

The British Government remains committed to support and sustain the people of Gibraltar in the face of difficulties created by the closure of the land frontier with Spain in 1969. The provision of aid serves as a visable demonstration of this commitment. aid programme (1975-8) agreed in 1974 at an estimated cost of £7.6m is behind schedule due to shortages of labour and materials, siting difficulties and cost escalation of major projects. Economic activity is heavily dependent on UK inputs particularly MOD. Additional aid (including possible budgetting aid) may become necessary. Aid talks between the British Governmert and Gibraltar Government on the next programme may be held in London in late 1977.

Not grant-aided. Aid policy will have to be reviewed in context of indepand- ence and eventual end of phosphate

revenues.

Economically viable: no aid questions arise.

Grant-aided. Unlikely to become economically viable unless in association with others.

CONFIDENTIAL

/NEW HEBRIDES