TNAG-0828-FCO40-1036-Dependent-Territories-Senior-Appointments-Board--1979-1979 — Page 117

HWC 014/1

Tom Resell

W(41)

Mr Stratton

CAYMAN ISLANDS ANNUAL REVIEW

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I submit Mr Russel's despatch of 7 February.

This review summarises well the robust entrepreneurial spirit of these very independent-minded yet intensely loyal Islanders. Possibly stemming from its pirate origins, the territory is redolent of Edwardian laissez-faire capitalism. Over the past few years Caymanians have displayed a remarkable and cohesive talent for managing their extremely limited resources to their best economic advantage, at the same time maintaining governance over their own territory and its affairs, without losing control to the overseas investors. Much of this. success can be attributed in recent years to the unobtrusive but highly effective leadership of the Governor, who by securing the trust and confidence of his Elected Members and Civil Service, has managed to guide his strong-willed, ebullient and often intractable politicians into the ways of good government. In his efforts the Governor has been well and loyally supported by an excellent local civil service.

3. Superficially the Cayman Islands bear a close resemblance to Bermuda, but in the Cayman Islands the power and influence is firmly in the hands of the leaders of a very homogenous society. Consequently the Islands do not suffer the black/white, rich/poor syndrome that affects Bermudian society. Special legislation regulates the proportion of non-Islanders to their total population. Furthermore, Caymanian leaders, as they grow more affluent, care deeply about the welfare of the poorer elements of their own ethnic, non-racially aligned community. The risk of dissent within the community, at present not evident, lies in the growing wealth gap between the middle classes and the workers - and this tends to equate to a less black/more black contrast; high wages, full employment and good living conditions probably minimise this risk, but it is there. Overall the territory is content and stable with a very low crime rate. Other factors that contribute to the success of overseas investment in the territory are the presence of the British flag denoting respectability, the conservative nature of the people and the strong American business link.

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With such political and economic success, it is strange that with their growing prosperity, these shrewd, independent-minded and capable people do not seek independence. But partly from a genuine sense of loyalty to the British connection and to avoid risking the loss of confidence by overseas investors, the Government shuns independence: they are very content with the advantages they see in dependent status, which not only affords them protection and British status, but also gives them a very large say in running their own affairs. They are obdurate in their refusal to consider any form of constitutional advance, as they consider it to be the first step down the road to an unwelcome independence. It will be difficult, if not impossible, for the fore- seeable future to wean them from the security of the British connection. Any attempts to do this, need to be done with care, sympathy and tact; undue pressure would be counter-productive.

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