TNAG-0694-FCO40-844-Inspection-of-Hong-Kong-Department-1977 — Page 131

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Departments 'have full workloads.

Depart

Commonwealth Co-ordination

nt has its hands full with the forthcoming Commonwealth Conference. Hong Kong Department therefore offer the best temporary home for the "rump", pending a comprehensive re-organisation which we plan to embark on in about a year's time. The need to separate dependent territories staffing from the work of the ordinary Administration departments may well then have disappeared

4.

Aid administration for Gibraltar complicates the issue. Ideally Aid work should go with the rest of the section to SED. But ODM will not accept this, being (only willing to delegate such responsibility within the Joint Departments system. The next best solution, and one accepted by ODM, is

that they should take over Aid administration,with SED still providing the political guidance to the ODM.

5. The political implications of transferring Gibraltar work to SED cannot be ignored. Given current sensitivities, the merger, however presented, may be misinterpreted by the Gibraltarians as an indication of HMG's intention to force them towards Spain. But the geographical departments believe the move would not adversely affect our relations with Gibraltar to a significant degree if political considerations were allowed to dictate the timing of the move. There are delicate political problems ahead eg the closure of the Gibraltar dockyard and strong trade union reaction likely in Britain as well as in the Dependent Territory. The Governor of Gibraltare accepts the move but will need discretion as to when to inform Sir Joshua Hassan which should be done informally and in confidence. Thus, given flexibility on timing, we hope the move can be handled as a purely administrative matter without causing undue apprehension.

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6. There are good administrative reasons for getting on with these much delay/inspectorial recommendations as soon as possible - not least to resolve the continued uncertainty. hanging over GGD, and to a lesser extent HKD and SED. Thus all being well on the political front we hope that the transfer can be made by the beginning of March. Conclusion

7. ODM and all1 FCO departments involved accept the Inspector's recommendations in para 1 of this submission, with the rider that aid) work should be transferred to the (administration

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leaving only the future): 11 General section

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