TNAG-0715-FCO40-911-Future-of-the-Dependent-Territories-4 — Page 62

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CODE 18-77

CONFIDENTIAL

Mr Quantrill (Hong Kong and General Dept K 247)

Quantrill

No Clashe

822/11

POLICY TOWARDS DEPENDENT TERRITORIES

1.

Reference

HICC 025/2

** 0. 51

16 NOV 1978

DESK OFACER

INDEX

PA

į REGISTRY Action Tuke

ماه

ве

We spoke about your minute of 10 October and enclosures and agreed that you did not require a full reply in respect of the Falkland Islands.

2. We agree that the British Antarctic Territory is not relevant to the purpose of your

3.

exercise.

In the case of the Falkland Islands, independence is not an option. As you know, the Islands are claimed by the Argentines and we are currently negotiating with them (terms of reference for the negotiations are attached). As you will see, our objective is to "achieve a stable, prosperous and politically durable future for the Islands". Our negotiations with the Argentines are at an early stage and no rapid progress towards a solution should be expected.

4.

There are only 1850 Islanders and their wish is to remain under British sovereignty. No proposals could be put to Parliament unless they were first acceptable to the Islanders themselves. The comparison with Belize is really one of contrasts.

5. Draft territorial survey

Attached.

6.

Reserved Powers

It is difficult to envisage in the present political climate, any circumstances in which we sould consider transferring our reserved powers to the Falkland Islands Government.

7.

Aid Policy

Since independence is not an option, it follows that there is no link in our aid policy for the Falklands and movement towards independence. Our main aim has been to improve the economic and social structure of the Islands in an attempt to halt the economic decline and the dwindling population.

8.

Defence

Once again, the Argentine dimension over-shadows the issue. I agree with paragraph 4 of Mr Munroe's minute of 24 October to you.

9. As I mentioned I am in some doubt as to whether your inevitably generalised conclusions on, for example, aid and defence policy will be particularly relevant to the Falklands. Specifically if the Governor needed a formula to reassure local feeling about Britain's responsibility on defence, he would need to ask us for a form of words which met the specific circumstances of the Falklands.

10. Would you please let us see the finalised draft despatch before it issues.

J.R. Cowh

JR Cowling

South America Department K 274

233 4077

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CONFIDENTIAL