TNAG-1218-FCO40-1523-Future-of-the-Dependent-Territories-1983 — Page 214

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ANNEX

Fence

The Royal Marine garrison comprises 2 officers and 40 marines who do a tour of 12 months. There is also a local voluntary and part-time force of 40, the Falkland Islands Defence Force. The Royal Navy, ice patrol vessel, HMS Endurance

One of her is deployed to the South West Atlantic from December to April each year. tasks is to effect the change round of the garrison through Montevideo.

The Economy

The Colony's economic prospects are limited. The economy is based almost entirely upon sheep farming (638,000 sheep in 1976/77) which employs half the work force. The Falkland Islands Company dominates the economy, especially the wool

trade and owns nearly half the land area.

6:

Lord Shackleton's Economic Survey of the Falkland Islands (1976) made wide

An extension to the ranging recommendations many of which have been implemented. new airport was not agreed and development of offshore resources i.e. fish and oil would be difficult without Argentine cooperation.

7.

The opportunities open to the Falkland Islands Government to diversify the economy are narrow; studies have been made to improve pastures and sheep farming. The extensive beds of seaweed (kelp) around the Colony's coastlines offer prospects of establishing a calcium alginates industry in the Islands, though the withdrawal of Alginate Industries (a UK company) from their commitment to develop these resources, was a major setback. Inshore fishing is a possibility, but there is no money available for a pilot scheme. 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.

8.

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

Taxation

9.

The budget hitherto has balanced. The main sources of Government revenue are income tax and company tax. Both are broadly in line with UK levels.

Currency and banking

10. The currency is local coinage (introduced in May 1975) and is interchangeable with sterling at par. There are no commercial banks but funds can be remitted through the Falkland Islands Treasury. There is a Government Savings Bank.

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