TNAG-1874-FCO40-2665-Relations-between-Hong-Kong-and-other-British-Dependent-Terr-1989 — Page 5

1

нив

020/7

11/8 Mr Stone [info]

I have

Minuted to Mr

Blatherwick

Mr Weston, SED

p.c.

From:

DE S Blatherwick

Date:

17 July 1989

CC:

Mr Ireton, ODA

Mr Ratford

Mr Fearn

Mr McLaren

Mr Fairweather

Mr Gorham, WIAD

Mr Paul, HKD

Mr Edis, EAD

Mr Tatham, FID

Mr Thomas,

Mr Coltman, MCAD

SPD

347

Mr Coombs,

IAU

Mr Clements, RMD

Mr Griffiths,

Finance Dept

W/31/1

RESPONSIBILITY FOR DEPENDENT TERRITORIES

1.

As you are only too aware, the National Audit Office has sent us a draft report on the FCO's handling of the Gibraltar Pensions Fund over the last two decades which criticises our alleged failure adequately to supervise the financial management of the Fund. Put briefly, the NAO claims that we should have taken steps to ensure that the The NAO Gibraltar Government acted in a prudent manner. report, once agreed with the FCO, will be published and will almost certainly form the basis for an enquiry by the Public Accounts Committee at which the PUSS of the ODA and the Diplomatic Wing will be called to give evidence.

2. This particular report is being handled separately. But I think we need to be clear whether there are other similar issues in connection with Gibraltar which could give rise to possible criticism on the part of the NAO whether justified or not; that is, other instances of action (or inaction) by the Gibraltar Government, even in matters within its own responsibility, where financial

or other mismanagement had occurred and HMG could be accused of failing to exercise a responsibility to ensure good government, or perhaps even warning the Gibraltar Government

I should be of the possible consequences of its action.

grateful if you could consider carefully whether there are other cases where criticism, however unfounded, might arise.

3. I should also be grateful if other Heads of Department to which this minute is copied could give similar careful consideration in respect of the Dependent Territories which come under their Departments' scope. One possible example

DB9AAP

24