TNAG-0832-FCO40-1040-Future-of-the-Dependent-Territories-1979 — Page 153

CONFIDENTIAL AND PERSONAL

their country's finances. The settlements are intended to be such as to sustain a development programme catering both for economic viability and basic social needs. If budgetary aid remains necessary after independence, this

can be provided for in the settlement.

9.

The normal criteria for our overseas aid will apply generally in the dependent territories, though we accept that there will continue to be, as for some years past, an emphasis on the establishment of sound administrative

infrastructure and the provision of basic services to the population. We will support social infrastructure developments which will help to provide for the basic needs of the more vulnerable groups, or which correct

obvious deficiencies such as weaknesses in public health services. Otherwise, we will give priority to productive investments which will help to develop basic resources and the available human potential.

10.

We are also of course concerned to create the political conditions that will make independence possible. The standard constitutional path to independence is now well established, and has proved itself to be suitable even for very small states such as Tuvalu, with populations of less than 10000. But there are other problems to be resolved as well, particularly those arising from the position of tiny independent states in the world today. We do not,

for example, know to what extent small states are deterred from seeking independence by the disproportionate cost of

membership of international organisations. The Commonwealt has recently introduced the concept of "special membership

for small states, under which they make a nominal contribution to the Commonwealth budget, but still enjoy all the rights and benefits of membership except the right

to attend the biennial Commonwealth Heads of Government

Nauru and Tuvalu have both opted for this type of membership. It is British Government policy at the mom-

neither to encourage your discourage ent net

pendu

ad dependencies approaching independence to opt for this type of membership rather than full membership, on the grounds that this is more properly a matter for the Commonwealth secretariat to pursue. But if you believe that it might strengthen your Government's resolve in considering independence to be aware of this less onerous option to full membership of

meetings.

CONFIDENTIAL AND PERSONAL

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