TNAG-1001-FCO40-1237-Future-of-the-Dependent-Territories-including--Report-of-the-1981 — Page 107

CODE 18-77

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Misy Maxwe

Miss Maxwell, HKGD, Room K 245

FALKLAND ISLANDS: NATIONALITY BILL

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Please refer to Miss Brett-Rook's minute of 3 April about the information requested by Miss Demuth of Transport House. I have amended slightly the paragraphs on the constitutional position of the Islands. The following is the additional information requested:

(i)

Population with the right of abode: 1407 (1980 census).

(ii) Reaction to the Nationality Bill:

Islanders have made it clear that they are concerned about the new nationality legislation. They want British citizenship for all the inhabitants of the Islands. HMG recognises the particular problems of the Falkland Islanders and understands the concern of the inhabitants that they should be able to enter the UK should they need to do so. But it is not possible to make the Islanders a special case. A concession on British citizenship to Islanders would have to be extended to others. Such exceptions would jeopardise the whole basis of the proposed new legislation and defeat the objective of creating a British citizenship which reflected on individuals' close personal tie with the UK. Mr Ridley, the Minister of State, has reaffirmed HMG's pledge to do everything possible to assist Islanders in the event of an emergency. In the Second Reading debate on the new bill in January the Home Secretary made a similar pledge.

(iii) The Economy

The Colony's economic prospects are limited. The economy is based almost entirely upon sheep farming (638,000 sheep in 1978/77) which employs half the work force. The Falkland Islands Company dominates the economy, especially the wool trade and owns nearly half the land area.

Lord Shackleton's Economic Survey of the Falkland Islands (1976) made wide ranging recommendations, the majority of which have been implemented. The opportunities open to the Falkland Islands Government to diversify the economy are narrow; studies have been made to improve pastures and sheep farming. Lord Shackleton underlined the need to diversify the economy and attract investment to the Islands. The remoteness of the Islands, their declining population and the continuing sovereignty dispute with Argentina have so far proved a barrier to investment.

Exports from the Islands consist almost entirely of wool. The Colony's largest imports are foodstuffs, manufactured goods, timber and machinery. There is a small annual trade surplus.

8 April 1981

Дадам

D G Davies

South America Department