TNAG-2367-FCO40-3440-British-Dependent-Territories-(British-Overseas-Territories)-1991 — Page 94

ANNEX B

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CONFIDENTIAL

THE IMPACT ON ST HELENA

1.

St

SAAD believe that abolition of the Quota for St Helena would be damaging to that Colony's economy and morale. Helena is unique as the only Dependent Territory wholly supported by grant aid (£10 million per annum) and by its isolation, with infrequent communication only by sea. Strenuous efforts are now being made to reduce the Island's dependence on HMG through diversification of the economy and

improvement in its communications. With this in mind the

Quota is important to the development of the Island because it gives the inhabitants, albeit only 50 of them each year, assured work and social experience in the Mother Country. Without it they can only seek experience in the rarified atmosphere of the Falklands and Ascension Island, where they

have no right of abode. In his Annual Review for 1990 the

Governor of St Helena drew attention to the importance of the Quota on an island where it represents close to 1% of the total population and makes an important contribution to social stability, especially for young people who are frustrated by the very limited work and living experience on

offer.

2.

The Island can never move to independence, but if it is

to become at least partially self sufficient its inhabitants need the help which the Quota provides in order to develop their work experience and understanding of the outside

world. Moreover, that there is no real parallel between the size and diversification of Hong Kong's economy with its special geographical and political status and the isolation, vulnerability and poverty of St Helena.

3.

Having lost the Right of Abode in 1971, which still rankles, the morale of the St Helenians would be severely affected by a further sign of HMG's disinterest in their

BAGAFJ/8

CONFIDENTIAL