TNAG-0694-FCO40-844-Inspection-of-Hong-Kong-Department-1977 — Page 93

Mr Yeste

Minister of State

Secretary of State

GIBRALTAR

1.

CONFIDENTIAL

MLA 31/197, Plassile

R.+Q.

JJ 31|1

Pris have que f An Stewent in Brun

RECEIVED IN REGISTRY No. 74

31 JAN 1977

HXA15/1

In my view we have slightly too many Departments in the Office, with in consequence unnecessary cost, dispersal of effort and resultant loss of efficiency. Accordingly, the FCO Inspectors have been reviewing the work of the Joint FC0/ ODM Departments and Southern European Department (SED).

2. I have accepted on grounds of both economy and efficiency recommendations which inter alia involve disbanding Gibraltar and General Department. Apart from Aid work, which the ODM will now take on with continuing political guidance from SED- all responsibility for Gibraltar affairs will be consoli- dated in SED, who already handle the colony's external affairs. But before putting this into practice, I think I ought to warn you of one possible consequence.

3. Although this change is purely an administrative measure and one which should, in practice, result in greater efficiency in the conduct of their business, it is possible that some Gibraltarians may put a political interpretation on it and claim to see in it an attempt to push them towards Spain. On balance I do not expect serious trouble on this score, such as could, for example, confidently be expected from the closure of the Gibraltar dockyard. But I think it would be a prudent first step - which, if you agree, we shall take now to have the Governor tell Sir Joshua Hassan informally and in confidence that we plan to make the change with effect from, say, 1 March and that it is merely a part

If Sir J of a necessary administrative reorganisation. Hassan's reaction were very unfavourable, we might have to think again about the timing, but not, I hope, about the substance. The present arrangement no longer makes sense.

27 January 1977

bcc

Chief Clerk Mr Unwin PPD Mr Winchester SED MP Lewis GGD ✓

Vichare Samis

Michael Palliser

AWX

31/1 CONFENTIAL

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