Select Committee on Foreign Affairs Second Report


SECOND REPORT

DEPENDENT TERRITORIES REVIEW:
INTERIM REPORT

The Foreign Affairs Committee has agreed to the following Report:


INTRODUCTION

  1. On 27 August 1997, the Foreign Secretary announced a fresh look at policy towards the United Kingdom's remaining Dependent Territories, which are listed in Table 1. The Review will consider whether changes in policy or practical arrangements are desirable. It will address generic issues relevant to all Dependent Territories and specific issues relating to individual Dependent Territories.[1]

  2. As the Review is unusual in that it has no formal terms of reference,[2] we decided to seek further information from the Government. In the light of this[3] we resolved to take oral evidence from a range of interests, including the Dependent Territories Association and Baroness Symons of Vernham Dean, the Foreign Office Minister with overall responsibility for Dependent Territories matters.[4] We also took the rare opportunity of their official visit to London to take oral evidence from elected representatives from St.Helena.[5] We have also received a substantial amount of written evidence, including submissions from elected representatives in many of the inhabited Dependent Territories. We are most grateful to all who have submitted evidence to us.

  3. The Foreign Secretary originally intended to announce the outcome of the Review at the Dependent Territories Association conference on 4 February, Baroness Symons indicated, however, that it was important "not to have predetermined timetables by which everything must be decided."[6] We understand that the Secretary of State's address to the Conference will be in the nature of an interim conclusion.

  4. We have therefore decided to produce an interim report on some of the issues that have been raised in our evidence, as a contribution to the wider debate on the future of these territories. We propose to return to the matter of the Dependent Territories at a later date, when the full outcome of the Review is available. We therefore welcome further contributions, from representatives of the Dependent Territories and others, both in response to this report and to any announcements the Secretary of State may make.

Table 1

The United Kingdom's Dependent Territories
Inhabited Dependent Territories

*Anguilla
Bermuda
*British Virgin Islands
Cayman Islands
Falkland Islands
Gibraltar
*Montserrat
*Pitcairn Islands
*St. Helena (with sub-dependencies Tristan da Cunha and Ascension Island)
*Turks and Caicos Islands

Dependent Territories with no permanent indigenous resident population

British Antarctic Territory
British Indian Ocean Territory
South Georgia and the South Sandwich Islands

*Dependent Territories receiving substantial United Kingdom development assistance. See Cm. 3789, panel 16. See also HC Deb, 28 January 1998, Vol. 305, Col. 331.
The Governor of St Helena is also the Governor of Tristan da Cunha and of Ascension Island. The Legislative Council of St Helena has no responsibilities towards the subdependencies.

The Dependent Territories

  5. The United Kingdom's remaining Dependent Territories are distributed worldwide and are highly diverse in character. Indeed, it is this very diversity which is at first sight the key feature. Baroness Symons commented that they were "very different", even within the Caribbean.[7] Three have no permanent indigenous population. Others are isolated islands with subsistence economies, while others have high GDP per capita,[8] often as a result of their development of tourism and as off-shore financial centres. What they all have in common, though, is that they constitute the residue of the British Empire and that they willingly owe allegiance to the Crown. All the inhabited Dependent Territories have some form of internal self-government, the extent and character of which varies from territory to territory. The Governor, appointed by the Secretary of State, is usually responsible for external affairs, defence, law and order and the public service.

  6. The Foreign and Commonwealth Office is responsible for the good government of the Dependent Territories, including their proper financial management. It aims also to improve the standards of government in the Dependent Territories. The Government's general policy on independence for Dependent Territories is to assist moves in this direction if and when it is the clearly and constitutionally expressed wish of the local people. This general policy does not apply in the case of Gibraltar, because of the provisions of the Treaty of Utrecht.[9]

  7. It should be remembered that considerable benefits accrue to the United Kingdom in return for the responsibilities of administering the territories: for example, Ascension Island is a key element in the Falklands air-bridge and the British Indian Ocean Territory provides an important military facility for the United Kingdom and its allies.

  8. Some of the territories are rich in natural resources: for example, the Falkland Islands have substantial fisheries and may have rich deposits of oil in their territorial waters and minerals on-shore. At the parliamentary level, those with legislative assemblies are active participants in the Commonwealth Parliamentary Association.[10]

  9. It is nonetheless true that the responsibilities exercised by the United Kingdom in respect of these territories do expose it to potential liabilities resulting from their actions. The Comptroller and Auditor General reported to Parliament in May 1997 on the United Kingdom's contingent liabilities in the Dependent Territories.[11] More recently, the Public Accounts Committee took evidence on this subject from the Foreign and Commonwealth Office.[12] This evidence covered a wide range of issues, including the difficult question of the balance between internal autonomy and protecting the legitimate interests - including the financial interests - of the United Kingdom. We also received evidence of a specific example of this from St Helena witnesses, who were critical of the Government's refusal to sanction a lottery via the Internet and based on St Helena.[13]

  10. In view of the fact that the Public Accounts Committee is expected to report on the subject of contingent liabilities in the Dependent Territories, we do not propose to address these important issues in this interim report. We may well return to aspects of this matter in our final report. We nonetheless take the view that there should be a presumption in favour of the maximum degree of internal self-government in these territories.


1  Because of the particular circumstances of Gibraltar and the Falkland Islands, policy towards these two territories will continue to be handled separately (see paragraph 13, Ev. p. 26 and Q169). Back

2  HC Deb, 29 October 1997, Vol.299, Col.824w. Back

3  Ev. p. 26. Back

4  Q131. Back

5  See Ev. pp. 17-21 and Q65-104. Back

6  Q108. Back

7  Q113. See also Q1. Back

8  Contingent Liabilities in the Dependent Territories: Report by the Comptroller and Auditor General, HC 13 (1997-98), Figure 1. Back

9  See HC 13 (1997-98), paras. 1.1 to 1.4. Back

10  Q6. Back

11  HC 13, Session 1997-98. Back

12  Minutes of Evidence taken before the Public Accounts Committee on 15 December 1997, HC 435-i (1997-98). Back

13  Q93-95. See also Appendix 2, p. 46, concerning a proposed banking operation which did not proceed. Back


 
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