TNAG-1461-FCO40-1987-Future-of-the-Dependent-Territories-Hong-Kong--Gibraltar-and-1986 — Page 48

IV

CONFIDENTIAL

maladministration and corruption of the USVI are unlikely to attract the majority of BVI islanders. Complete independence remains the best option for HMG to pursue. With proper regard to the country's political development, independence should be

achievable in 10-12 years.

TURKS AND CAICOS ISLANDS

General

Main Imports

Total Imports (1982/83)

Main Foreign Currency

Earners

Total Foreign Currency

Earnings

Main Industries

UK Aid (1985/86)

Budgetary

Capital

T.C.

-

Foodstuffs, manufactured goods

£26m

- Tourism, lobster, conch, financial

serives

- N/A

Tourism, off-shore companies

£1.7m

- £3.2m

- £0.9m

Economic

1. Because of the poor soil and unpredictable rainfall,

agricultural production is confined to subsistence crops. The principal natural resources of the islands are spiny lobster and

conch, which are mainly exported to the United States. There is however little scope for increasing these areas of activity. Significant growth is likely to be limited to the tourist industry and off-shore investment though the future of TCI as a

tax haven may be restricted in view of its late entry into the

field. On the tourist front the Club Mediterranee opened a holiday village on the island of Providenciales in December 1984

(encouraged by the construction of an international airport

funded by a UK capital aid grant of some £6 million) and it is hoped that the impetus will be maintained by the construction of

a Sheraton Hotel on Providenciales. It had been hoped that a

proposed aragonite project would provide additional revenue but

this appears to have fallen through.

CONFIDENTIAL