We derive no benefit from our responsibilities for the Dependent Territories and Associated States. On the contrary, these territories are a net liability to us.
We are obliged to make available to them a high level of aid in per caput terms and we risk political embarrassment and defence expenditure on their behalf. The benefits we derive from trade and investment are small (and could be expected to continue if we were less closely involved). Intrinsically, the stability of these territories matters to us no more than any other part of the world, and considerably less than some.
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All of that is of course true. But with the Pacific dependencies on the road to independence our remaining net liabilities are surely not very intimidating? Given that and given also the limited range of sticks and carrots available to give effect to the policy I wonder if the passive approach which preceded that of accelerated decolonization isn't the right one after all for the BVI if not for the troublesome Turks and Caicos.
St Helena and Dependencies
5. The analysis of the strategic value of St Helena and Ascension is very interesting, but I am still not quite clear about the interdependencies in this connexion. Can we, for example, operate the defence installations on Ascension without immigrant labour from St Helena? Secondly, the burden of paragraph 15 is presumably that the strategic potential of St Helena is nil as far as we are concerned, provided we retain our hold on Ascension (since the one would merely duplicate the other at vast cost); but that because St Helena would be an attractive acquisition for the Russians we would not wish it to fall under their influence or into their hands. From which it follows that a Seychelles/BIOT solution (supposing that were practicable on other grounds) we would be strategically unacceptable to us.
6. I think it would be useful to include a paragraph on the implications of an EEZ for each of the islands and of their possible use as bases from which to prospect and exploit seabed resources.
25 July 1977
Cc:
Mr Stanley Mr Stewart
Mr Bullock
Huthony Barnetz
Anthony Beattie
DTEU
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