TNAG-1461-FCO40-1987-Future-of-the-Dependent-Territories-Hong-Kong--Gibraltar-and-1986 — Page 58

Costs and Benefits

CONFIDENTIAL

5.

Although 'full costs' such as aid, defence and administration can to some extent be quantified, the total burden to the UK of retaining the dependent territories is unquantifiable: much of it is political. The 1973 Review demonstrated that the extra costs of aid and defence associated with continued dependency are comparatively insignificant, at least in the short to medium term, and should never be the determining factor in policy decisions on the political future of any territory. As the review also observed in the case of a few territories there can be compensating benefits to the UK of continuing dependence, notably in the fields of defence, communications, resources and scientific research. Conversely, inducements to become independent such as aid and defence guarantees also involve long term financial and other commitments by the UK. The 1973 paper stated that "the potential nuisance value of the territories as a whole is out of proportion to their size, population or significance".

Is this still so? The case of the

Falkland Islands suggests that it is and the balance between the value of the UK interest and the cost of retaining the territories. needs to be considered to see whether UK interest in each case is strong enough to warrant carrying the costs of retaining their dependent status, (Part IV).

a) Defence: The MOD point out that they cannot give costings by

geographical deployment. The costs for instance of stationing a RN guardship in the Caribbean are subsumed within General Purpose Naval Forces. The current UK personnel strengths in the dependent territories under review are Bermuda (Royal Navy 13, Army 4); BIOT (Royal Navy 18, Royal Marines 21); St Helena and St Helena Dependencies (RAF 270:1 Hercules); South Georgia, South Sandwich (Army 41). Annual running costs of HMS Endurance amount to over £4m. Her current refit will cost over £15m and extend her life to 1995. A replacement would cost more than £50m at 1986 prices. There are no permanent deployments in the Caribbean territories, nor in Pitcairn, Henderson, Ducie and Oeno Islands. The cost of the UK's commitment in Bermuda was

AATTAT PATRATTAT