TNAG-0724-FCO40-922-Policy-on-use-of-Prerogative-of-Mercy-1978 — Page 36

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4. Group Captain Newton said he knew there was a NATO plan for the defence of Bermuda. ~ir Peter Ramsbotham added that although the Bermuda regiment could not have a NATO role it could play a signifi- cant part in antisaboteur and anti-subversion activities and could

thus be said to be adding to the overall Western defence effort in the region.

5. Mr Cortazzi asked Mr Munro to arrange for this question to be looked at in depth with a view to our persuading the MOD that Bermuda should be treated as a member of NATO for the purposes of charging costs for military training. Although it would reinforce the argument if we could say that Bermuda fully intended to become a member of NATO

after independence, the Governor doubted if the Bermuda Government would give an answer on this point at this stage. Our argument should be made on the basis of their present contribution to defence. Mr Cortazzi said that he would write to Sir Peter Ramsbotham about

this and that we would also re-examine the feasibility of Bermuda joining NATO after independence.

6. Mr Cortazzi then turned to the question of the costs for the

recent deployment of troops to Bermuda. He could understand the Ministry of Defence's point of view in wishing to recover the full costs for this operation since their budget was under great pressure. On the other hand he could see why the Bermuda Government might regard the charges as unreasonable. He suggested that the Governor should advise the Bermuda Government that it would be unwise for them

to have a dispute with the British Government over this and that he hoped it would be possible to come to a settlement.

7. Mr Duff said that in the department's view the equitable bill would be for extra rather than full costs. Sir Peter kamsbotham said that the Bermuda Government's main difficulty would be in justifying the charges in the House of Assembly. They had not been informed in terms that the British Government would be charging full costs for future operations. Furthermore, there was a point of principle:

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/Bermuda