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ng the Territory's period of budgetary aid received a car from FCO funds. Overall there were still far too many anomalies in the system and the DTLG would need to look further into this whole question.
d) DTs and post objectives
7.
Mr Waterton reported that with the exception of the Cayman Islands, all DTs had submitted "post objectives" for 1989. DT governments were not "posts" and RMD could not insist that they respond to calls for objectives. However, it was of great help to RMD if Governors could agree to use the exercise as an opportunity to polarise their thoughts regarding the DTS' likely programme expenditure on eg scholarships, sponsored visits. Of course, there might sometimes be conflicts between DT and FCO objectives. But clearly defined objectives could be an instrument to ensure the transfer of resources to areas to which Governors accorded high priority (eg drugs, regional security). Hence the contents of DT returns to the resource questionnaires could be of considerable significance. Mr January took note of these points, and suggested that geographical departments should emphasise to Governors the importance of the post objectives exercise.
Item 2 Economic Issues
8.
Dr Brewer reported that there had been considerable progress on the C&L survey since the last DTLG meeting. Mr Gallagher had produced a good fifth draft of his final chapter outlining recommendations and conclusions. DW and ODA departments had made extensive comments on earlier versions, and were satisfied with the present form. The Whitehall Steering Group would meet on 9 October to discuss the present draft. Other Whitehall departments might raise technical problems regarding the Gallagher proposals. The Treasury's concerns regarding HMG's liability were a case in point, though in FCO Legal Adviser's view the transfer of control proposed by Gallagher in the case of Montserrat would not in the strictly legal sense increase HMG's liability. However, the related issue of political liability was less straightforward. Gallagher's report would be submitted to the PUS and to Ministers in mid/late October.
9. The most immediate action following the approval of Gallagher's report would concern Montserrat, where we proposed to transfer control of the offshore finance sector from the Chief Minister to the Governor, thus bringing Montserrat more closely in line with the administrative system in the Cayman Islands whose offshore finance sector had been such a notable success. Radical action in Montserrat was essential since its offshore finance sector
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