TNAG-2367-FCO40-3440-British-Dependent-Territories-(British-Overseas-Territories)-1991 — Page 48

CONFIDENTIAL

HKD 213

RECEIVED

213/1

13447 1991

27

1.

I agree with the recommendations.

It would be hard on St Helena to deprive it of its quota. And to do so would involve us in an extra and continuing financial commitment (see Annex B).

2.

But I think Ministers will wish to consider whether the public line at Annex B is defensible. To announce a phasing out, as suggested there, when our intention is to try to preserve the scheme for St Helena, would be pretty misleading. In some ways it would be better to say at the outset that we intended to exempt St Helena from the phasing out. But that would be likely to create a problem with Hong Kong which would feel discriminated against. We should not add to Hong Kong's current list of problems.

3.

I think the best course would be to say in the public announcement that the position will be reviewed in late 1992 to establish whether the phasing out is posing significant difficulty for any dependent territory.

John Coles.

JOHN COLES

26 April 1991

CC:

Mr Burns

Miss Spencer

Mr Beamish

Mr Paul, HKD

Mr Baker-Bates, SAAD

Mr Gorham, WIAD

Miss Brooks, Legal Advisers

Mr Crystal, News Dept

Mr Hobman, LACAD, ODA

Mr Hoole, Governor-

Designate, St Helena (c/o HOMS)

JC1ABM

CONFIDENTIAL