TNAG-0714-FCO40-910-Future-of-the-Dependent-Territories-1978 — Page 94

CONFIDENTIAL

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N.B MR DALE'S

intulution will fruhably sifercade e).

ила

UNDER FOI EXEMPTION NO 27. (9) kid.

THIS IS A COPY

THE ORIGINAL HAS BEEN CLOSED UNTIL

d) Those claimed by other powers. UK Government se king to

negotiate settlements consistent with the wishes,

e)

the inhabitants;

of

Hong Kong is not listed, as decolonisation is not an option.

i) Gibraltar

ii) Falkland Islands

and Dependencies

iii) Belize

The only practicable decolonisation option is some form of association with Spain

Independence not an option.

Independence probable if they accept terms of a settlement with Guatemala.

Those reluctant to become independent but may respond

to encouragement:

i) Bermuda.

Financially independent, so that a financial settlement would not in itself provide necessary impetus. However offer of assistance by British Missions as channel of communication for the Bermudian Government and help with consular services for a period of, say, 5 years might help to overcome Bermudian reluctance. Though not keen on becoming Independent Bermuda exercises much devolved power. The recent Green Paper on Independence has not generated much enthusiasm. Rather than allow things to develop slowly, should we not now say to the Bermuda Government that if they wish to retain their powers (and the death penalty) they must make speedy progress towards full Independence?

ii) British Virgin Islands

ร

New constitution providing a greater degree of internal responsibility introduced in 1977. Islanders cautious regarding independence following 1971 recession which seriously affected their main industry-tourism.

Should we withdraw from budgetary aid? Should BVI link with USVI? Would more substantial

Aid

encourage BVI to seek independence (but probably not before 1980/81)?

iii) Cayman Islands

Financially independent. UN Mission to Caymans in May 1977 recognised islanders' determination to remain a Dependent Territory. Promise of consular help and economic aid may encourage independence.