CONFIDENTIAL
a black Premier. In the event Mr Gibbons, a white, was chosen. as the man best able to reunite his party. Although quick thinking and decisive, he was considered to lack political experience and, as a highly successful and wealthy businessman, typified the right wing white establishment. Shortly after he became Premier he was faced with an industrial dispute which led to a forty eight hour strike of hotel employees and a heightening of political tension, with racial undertones. The contrast between the Government's anxiety to allow no thing to damage Bermuda's reputation for stability and the PLP's championing of the rights of the (largely black) workers was brought into sharp focus. The polarization of the two parties was increased dramatically by the executions of Burrows and Tacklyn, largely because of the campaign by the Leader of the Opposition, Mrs Browne-Evans, who was also Tacklyn's lawyer, to secure a last minute reprieve and the political capital the PIP have made of the differing interpretations of the Creech-Jones doctrine. Bermudian opinion, as reflected in the newspapers, has been that the last week was among the blackest in Bermuda's history.
Economic
6.
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With a per capita income exceeding that in the United States (US$7,000 in 1976), and inflation rate of 41% and unemployment at : 11% Bermuda is one of the world's most prosperous territories.
Tourism is the major industry (contributing about 45% to the GNP) and Bermuda's whole economy is geared to it. The 560,000 visitors in 1976 contributed about BDN $200m to the economy.
7. Manufacturing industry, which is on a very small scale, is confined to small boat building and ship repairing, pharmaceuticals, concentrated essences, beauty preparations, handicraft, souvenirs and furniture. Bermuda attracts the registration of many international companies because of tax advantages (there is no income tax or estate duty) and considerable banking and financial activity takes place in the territory. International companies contribute about $40m annually to the economy or an estimated 13% of the GNP. The Bermuda dollar has been pegged to the US dollar since August 1972.
8. UK exports to Bermuda in 1976 amounted to £14.4 million; imports were valued at £3.6 million. Bermuda received no grant aid from the UK, although some technical assistance is occasionally provided on payment.
Independence
9. The Green Paper published by the Bermuda Government in July has not made much impact on Bermudians generally. Although the facts were fairly presented, the Paper tends to emphasize the advantages of Bermuda remaining dependent, in particular the need to retain the confidence of investors and tourists, and the cost of overseas representation if independence were achieved. The Premier does not expect the Bermudian people to be in favour of independence just yet.
W.I.A.D.
Desember 1977.
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