TNAG-0832-FCO40-1040-Future-of-the-Dependent-Territories-1979 — Page 161

Registry No.

SECURITY CLASSIFICATION

Top Secret,

Secret.

Confidential.

Restricted.

Unclassified.

PRIVACY MARKING

CONFIDENTIAL

DRAFT

TERRITORIAL SURVEY

Type 1 +

From

To:-

Telephone No. Ext.

Department

DSR 11

In Confidence TERRITORY: CAYMAN ISLANDS

POPULATION: 14,800

SPECIAL FACTORS:

Proximity to Cuba and Jamaica

PROSPECTS FOR INDEPENDENCE: The Cayman Islands are content

with their dependent status and there is little evidence to suggest that this attitude will significantly change in the immediate future; in fact HMG is faced with the prospect of

retaining responsibility for this affluent territory for a long time. With this limited prospect it is not easy to identify consittutional change which will not in practice make continuing dependence, with some greater local autonomy, seem increasingly attractive. HMG's leverage is minimal; we have no budgetary aid weapon, development aid is small and will cease in 1980 and since the territory is well admini- stered we have no cause to interfere in the internal running

of the country. Further obstacles to independence are the Cayman Islanders' certainty that dependence has positive advantages and their fear of being left alone with Cuba as their next door neighbour.

POSSIBLE ALTERNATIVES TO INDEPENDENCE:

None

In

RECOMMENDED POLICY: Accept dependence for the present. encouraging constitutional progress great care will be needed not only to allay local suspicions of being abandoned, but also to preserve the present stable and hospitable climate for the finance and tourist industries, without which the present affluence would collapse. Since life under the British flag is of key importance to Caymanians, any forceful attempts to persuade them to move forward constitutionally would be counterproductive. Much skill and patience are needed in any political approach of this nature

no short cuts.

GAVAT

there are

CONFIDENTIAL