TNAG-1218-FCO40-1523-Future-of-the-Dependent-Territories-1983 — Page 154

ISLANDERS RECEIVING £17,000 WORTH OF ECONOMIC AID PER HEAD OVER NEXT

SIX YEARS?.

65. We have a special obligation to the Islanders to do our utmost to sustain a viable way of life, taking realistic account of the possibilities. I do not think that the British people will begrudge the Falkland Islanders this treatment after the tragedy of the invasion.

IS AID ADDITIONAL TO THE REGULAR AID PROGRAMME/AT EXPENSE OF OTHER DEVELOPING COUNTRIES?

66.

The new aid for the Falklands will be financed in the main from additional funds to be added to the public expenditure allocation for the aid programme, with the balance found from the unallocated protion of the aid programme. No existing commitments will be cut to pay for it.

ROLE OF THE FALKLAND ISLANDS COMPANY

67.

In view of the Falkland Islands Company's position in the agriculture and trade of the Islands, it can clearly play a valuable role in economic diversification and development.

[IF PRESSED: The Company has long played a significant role in the life of the Falklands community. In his recent economic survey, Lord Shackleton recognised that the Company's record on

re-investment of its profits in the Islands was better than that of the majority of expatriate farming companies. In 1980 they sold the farm at Green Patch to the Government for the purpose of sub-division into six smaller units and have agreed to give up their basic banking services to the Standard Chartered Bank].

COALITE/FALKLAND ISLANDS COMPANY PROFITS

68.

The Falkland Islands Company forms only a small part of Coalite's operations and accounts for less than 1 per cent of the Group's profits.

SUB-DIVISION OF LARGE FARMS

69. The case for sub-division of existing large farms is not yet proven. There is no firm evidence for example that sub-division would either promote development or create employment. Islander opinion, which has been consulted on this point, is also unpersuaded of the advantages of wholesale sub-division. We have therefore opted for a gradual approach to land redistribution. As Lord Shackleton records, a start has been made with the purchase and sub-division of the farms at Green Patch and Roy Cove.