FAL AND ISLANDS AND LEFENTENCIES
The Falkland Islands have an Exeautive Council consisting of the Governor, as iresident, two ex-officio members, two unofficial members appointed by the Covernor and two elected members, elected from the members of the Legislative Council. The Legislative Council consists of the Governor, two ex-officio members and six members elected on the basis of universal adult
suffrage.
The Islands have been a British Dependency for 150 years but are claimed by Argentinaz In mid-1976 an Economic Survey of the Islands, commissioned by the Government and conducted by Lord Shackleton, showed that the Falklands were in decline, and that no new investment was likely, nor any development of economic resources in the area practical in a climate of continued political uncertainty. This led Britain to consider the desirability of opening a dialogue with Argentina with a view to establishing a new framework of economic and political cooperation; without this the future of the Islands appeared bleak. The Minister of Ltate, Mr kowlands, accordingly visited the Falklands in February 1977, and, after full and wide-ranging discussions, obtained Islander agreement that the Government should try to establish formal Anglo-Argentine negotiations. The islanders accepted that these would have to include the sovereignty question. They were given full assurances that they would be closely consulted throughout any talks; that proposals for a settlement
if indeed any emerged would have to be acceptable to them before being brought to Parliament; and that the talks themselves would be conducted
under what has come to be known as the sovereignty umbrella, ie without prejudice to Britain's sovereignty position. Terms of reference for negotiations were subsequently agreed with the Argentines; copy attached. Two rounds, both essentially exploratory in nature have been held so far, the first at
official level in Rome in 1977 and the second at Ministerial level
in New York in December. At the December meeting it was agreed that parallel working groups, dealing respectively with political relations, including sovereignty, and economic cooperation, should be established at official level. Their task would be to examine
in closer detail the themes with which the negotiations are con-
cerned and to report back to Ministers. The first meeting of these
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