CONFIDE VTIAL
Mr Cortazzi
Private Secretary
cc PS,Mr Rowlands
PO/PU
(with copy of paper)
hr Stratton
Mr Stephen
BERMULA
1. When submitting the background paper on constitutional, political and social issues in Bermuda which the Secretary o State had requested, I was conscious that it was relatively optimistic in tone, particularly in comparison with some of the reports which have appeared in the British press. Much
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of the content of the paper was of course factual but it did attempt to arrive at an assessment of the democratic and multi-racial nuturc, of Bermudian society;. the text was sent in drøft to the Deputy Governor of Berwuda, who added his own comments and cleared the amended draft with the Governor.
2. There have been several opportunities to discuss Bermuda with officials in the services and others who have visited Bermuda in recent weeks. They have given a less happy picture of the attitudes and tensions in Eermudian society; or the extreme racist attitudes on the part of some leading white members of Bermudian society and of life styles of the more affluent whites reminiscent of he worst assccts of the colonie? era; and of a complacency and a failure by whites to recognize that there are underlying racia roblem, which caun ́t be,ignored.
bút the
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7. buch impressions by visitors can only be partial. have tended to confirm the view we are coming to in the Depart- ment that Bermuda's class and r cial division and the relative dis arities in personal wealth. re greater and more entre ache? than the Bermuda authorities would have us believe. The Bermude Government, of course, have a s rong interest in presenting the best possible picture of Bermud, as bermuda depenis almost entirely on her tourist industry and on international financial and banking activities and thes are to some extent symbiotic. A marked deterioration in the h. therto relatively stuble nature of island society could result in the collapse of Bermuda's econɔmy.
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In the Department's view therefore the overall esses.ment of the background paper needs to be qualified. Sir Peter Ramsbotham has been in Bermuda or four months. Now that the immediate crisis appears to be past I think we should auk him for a comidered assccomcat of the situation in Bermuda and the
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CONFIDLETIAL
implication
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