TNAG-0715-FCO40-911-Future-of-the-Dependent-Territories-4 — Page 64

CODE 18-77

11

69

*

CONFIDENTIAL

77)

Reference

Quantrill

Mr Quantrill, HKGD

Nclarbe $224/10

POLICY TOWARDS DEPENDENT TERRITORIES

1. Your circular minute of 10 October.

I attach as annex A a

draft survey, on the lines requested in your para 3.

Reserved Powers

2. Your subpara 5(i). I attach as annex B an extract from the circular despatch of 1969 showing what are the present reserved powers of the British Government in Gibraltar. We are not at present contemplating devolving further powers on Gibraltarian ministers.

Aid Policy

3.

Wage levels in the public sector (65% of all civilian employees) are now the same as in UK; aid is given for political, not economic, reasons mainly in fulfilment of the British Government's undertaking to "support and sustain" Gibraltar in the face of Spanish restrictions. There is no commitment to continue it after these are lifted, although there obviously could not be an abrupt aid cut off. With restrictions removed, Gibraltar ought to be able to achieve at least the standards of living of the neighbouring parts of Spain; with Spain in the EEC EEC programmes of regional aid should ensure that the standard of living approximates to general European standards, (and probably surpass that of parts of UK).

Defence

4.

Any settlement with Spain of the Gibraltar question would have to take into account the defence installations in Gibraltar, which primarily serve a NATO purpose, (or, in the case of the dockyard, a national UK purpose), and have implications beyond what is needed for the defence of Gibraltar's own territory.

23 October 1978

лабый

W H Fullerton

Southern European Department

itxa

RECEIVED

025/2

790. $1

1 4 NOV 1978

DESK OFFICER

INDEX

но

PA

||24|11

REGISTRY Vation Taken

CONFIDENTIAL