MissionOverviewDepartments - Islands Plan - Constitutional Review - FIDC - FLH - FCO - RELATIONSHIP WITH UK

Britain and the Overseas Territories
Statement by Minister of State Baroness Symons of Vernham Dean to the House of Lords
12 July 1999

The importance of the White Paper is that it marks a turning point in our relations with our former colonies, marking the start of a new forward-looking relationship.  This is symbolised by the change of the name from "dependent" to "overseas" territories.  At its core are policies and plans which form the basis of a renewed contract between the United Kingdom and our overseas territories.

Before turning to the implementation of the proposals in the White Paper, I should remind the House of Her Majesty's Government's attitude towards addressing the relationship with the overseas territories.  This is not an easy matter, founded as it is on a colonial past and concepts of Empire which no longer obtain today.  Indeed, such concepts often cause anger, and even offence on the one hand, and embarrassment on the other.

In the review we set in motion in July 1997, we wanted to look at three key issues.  First, how we can modernise the relationship for the 21st century; secondly, how we can consult the overseas territories about the future and encourage good government in them; and, thirdly, how we can forge a real partnership between the United Kingdom and the overseas territories.

Modernisation 

I turn, first, to modernisation.  Modernising relationships which are rooted in a colonial past is no easy matter at all.  We need clarification of that relationship and we need to consider the role of the overseas territories in the wider world and their obligations to participate in the standards and the practices of the international community.  We are under no illusions here.  We do not believe that "one size fits all".  Of course, some issues are generic, but all the overseas territories are different from each other.

In fulfilment of our part, we propose to change the status of the residents of the overseas territories to grant them British citizenship.  I stress that this is a free-standing offer to the citizens of our overseas territories.  We have not attached any conditions to this offer.  It is not dependent on any other policies which an overseas territory's government may or may not implement.  It will give proper recognition to their British connection, and their history, but give that recognition in the context of modern rights and obligations.

It is our intention to pass the necessary legislation at the earliest date possible, and to that end discussions are in progress with the Home Office and other government departments to establish the principles and applications of the nationality aspects of the overseas territories Bill before drafting instructions are issued.  The White Paper explained that this offer is not available to those who owe their British dependent territories citizenship to their connection with the British Indian Ocean Territory and the Sovereign Base Areas.  The position of the former is indeed a particularly complex one, as most of them are citizens of Mauritius or the Seychelles, and are not in the same position as residents in our other overseas territories.

In the mean time, recognising that there will be some delay, we are considering measures to make current immigration procedures easier.  These measures are related to the permission to stay which are attached to a variety of training and employment schemes and to arrangements for representatives of the territories on official delegations to the United Kingdom and the European Union.

Consultation 

I turn now to the issue of consultation and the rights of the overseas territories to consider and discuss measures which affect their future.  I will be chairing the first meeting of the Overseas Territories Consultative Council for chief Ministers.  That and the annual meeting with the governors are part of the ongoing process of consultation.  I should particularly like to pay tribute at this point to the work of our governors.  They have a very difficult and delicate balance to maintain between the demands of Her Majesty's Government on the one hand and the local aspirations of the territories on the other, while of course ensuring that all the territories are well governed.  It is a particularly difficult job to do in Foreign Office terms and particularly about when we are talking about modernising the relationship.  I believe that the overwhelming majority of them have discharged their duties in an exemplary manner.

Moreover, on the consultation front, in April the chief Ministers or senior representatives of the overseas territories and I participated in the European Union renegotiation of the provisions of the Overseas Countries and Territories Decision; that is, the OCT decision.  We discussed how to gain favourable market access to the Community, aid allocation and the dialogue with the EU on areas of mutual interest.

Ministers from the overseas territories have been invited to participate in the Commonwealth Ministerial Meetings as part of the British delegation.  For example, Commonwealth finance Ministers are due to meet shortly in the Cayman Islands.  A number of territories are also undertaking reviews of the provisions of their constitutions.  We will consult and discuss the outcomes of those in due course.  An example of this is the work that is already begun on redrafting the constitution of hte British Virgin Islands.

Partnership

I turn now to partnership.  Partnership is fundamental to our relationship with the overseas territories.  We have obligations to them which are central to our foreign policy.  They enjoy security, protection and prosperity from the United Kingdom.  however, partnership is a two-way street.  Partnership brings with it expectations and obligations on both sides.  Those obligations were spelt out by the Secretary of State in March, and include adherence to international standards of financial regulation, the application of basic human rights, adherence to the rule of law and democratic government, the control of international crime and ensuring that the same standards of public service and law enforcement apply as in the United Kingdom.  We shall work with the overseas territories to ensure that their structures and practices are updated where needed to take account of civil and political liberties and modern methods of governance.  We have a mutual interest in the control of international crime and the conservation of the environment.

Financial Services

Turning to financial issues, much has already been done by the territories in meeting international standards.  I highlight here the legislation on money laundering, international financial co-operation and work towards the independent regulatory authorities in Bermuda, the British Virgin Islands and the Cayman Islands.  All those measures are to be very much commended.

However, there is much more to do.  A meeting of financial secretaries from the Caribbean overseas territories was held in London on 16th June.  This discussed the agenda on financial services regulations set out in the White Paper.  Agreement was reached with the overseas territories and the Treasury on the logistics of carrying out the review of financial regulation.  Draft terms of reference for the review of financial services regulation by independent experts have also been prepared.  These will be discussed with the overseas territories before going out to tender.

The Government recognise the concerns and the burden that the OECD and EU proposals on harmful tax and other initiatives impose on the territories and their very real fears for the future of their financial services sectors.  We are working very closely with them to assist them in meeting those demands.  Seminars have been held on the taxation measures and DfiD has funded economic impact studies in Anguilla, the British Virgin Islands, Montserrat and the Turks and Caicos Islands.

The Foreign Office, the Treasury and the Financial Services Authorities have collaborated to produce guidance to the overseas territories on how to meet such international standards.  The guidance is being discussed in detail with the overseas territories at a seminar on 12th and 13th July.  We believe that that collaborative approach will enable Britain to meet its international obligations and to ensure that we put up a common front against fraudsters, tax evaders, money launderers and, of course, those who traffic in drugs.

Human Rights

As regards human rights, we expect our territories to meet their international obligations in the area of human rights.  We expect Bermuda to abolish capital punishment for murder; Bermuda, the British Virgin Islands to abolish judicial corporal punishment, and the relevant Caribbean territories to decriminalise private homosexual acts.  A delegation from the FCO will visit the overseas territories later in the summer to discuss taking forward the human rights provisions of the White Paper and we shall review progress in the territories at the end of the year.

The Government are looking at the whole question of contingent liabilities.  We have done it and continue to do so.  Those liabilities change, as the world around us changes, particularly in the arena of financial services, but that is very much to the forefront of our minds.

Montserrat

I have mentioned the importance of the environment and of combating international crime.  We have had some notable successes on drug seizures in our overseas territories and there is also the issue of sustainable development.  i was asked specifically about the position in Montserrat.  The volcano is relatively quiet, but the volcanologists have indicated that pyroclastic flows continue from time to time on an ad hoc basis.  I am happy to say that we have been able to ensure that £114 million in aid has gone to Montserrat over a five year period, dating back the past two years and protracting forward three years.

We are looking at all the Caribbean countries in the context of what is happening in the Caribbean in general.  Much work is being undertaken in the FCO in that respect and we are extremely vigilant.

Falkland Islands

As regards the Falkland Islands, in May there was a discussion on a wide range of issues.  The Foreign Secretary invited the Argentine Foreign Minister and the Falkland Island communities to London for a further round of talks tomorrow, 13th July.  I cannot anticipate the outcome of those talks, but I am sure that we all hope they have a positive outcome.

Gibraltar

I turn to Gibraltar.  I do not accept that there is any doubt about the Government's commitment over Gibraltar.  Her Majesty's Government stand by their commitment to the people of Gibraltar as set out in the preamble to the 1969 constitution.  The Government will never enter into arrangements under which the people of Gibraltar will pass under the sovereignty of another state against their freely and democratically expressed wishes.  That commitment is absolute.

Conclusion

The White Paper is not just about immediate action; it is about developing a continuing relationship based on dialogue and mutual commitments and obligations.  We have reformed the way we handle the needs of the overseas territories, making sure that they have proper points of contact and a clear voice not only here in London but, very importantly, in Brussels, too.  With the implementation of these policies, I believe that we have strengthened our relationship with the territories, that we have a constructive dialogue with them for the future, and that we can look forward to developing these relationships with renewed confidence.

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