A GUIDE TO THE BRITISH OVERSEAS TERRITORIES

C O N F I D E N T I A L SECTION 01 OF 04 LONDON 001039

SIPDIS

STATE FOR EUR/WE

E.O. 12958: DECL: 04/29/2029
TAGS: PGOV PREL ECON ETRD MOPS MARR AY CJ FK GI
IO, PC, SH, TK, UK
SUBJECT: A GUIDE TO THE BRITISH OVERSEAS TERRITORIES

REF: A)NASSAU 169 B)LONDON 993 C)08 LONDON 2667

Classified By: Political Affairs Counselor, Rick Mills for reasons
1.4 (b, c, and d)

Introduction and Summary
--------------


1. (C) The British Overseas Territories (BOT) are fourteen
far-flung possessions under British sovereignty that hearken
to the era when Britannia truly ruled the waves. One Foreign
and Commonwealth Office (FCO) official accurately
characterized the BOTs as "remnants of empire" -- acquired by
Great Britain when the phrase "the sun never sets on the
British Empire" could be spoken without a trace of irony.
The territories run the gamut from remote locales without a
permanent population, such as South Georgia and the South
Sandwich Islands, to largely autonomous entities like
Bermuda. Some, such as the Falkland Islands and Gibraltar,
are subject to sovereignty claims by other nations - although
the overwhelming percentage of the populations of both the
Falklands and Gibraltar strongly prefer to remain under
British rule. The British Indian Ocean Territory (BIOT,
which includes the atoll of Diego Garcia),Ascension Island,
and the Sovereign Base Areas of Akrotiri and Dhekelia on
Cyprus, are notable for their strategic value to the US
government.


2. (SBU) The BOTs comprise a mosaic of distinct cultural
traditions, reflecting their worldwide locations. Since
2002, BOT citizens have been British citizens, with limited
exceptions. However, the BOTs are not constitutionally part
of the UK. Each has a distinct constitution and a unique
legal relationship to the UK. HMG guarantees the defense of
all BOTs and handles their foreign relations. Many aim for
economic self-sufficiency, with tourism and finance playing a
significant part in the economies of many BOTs.


3. (SBU) This telegram provides an overview of the BOTs.
The FCO Country Profiles pages at www.fco.gov.uk offer
specific information about individual BOTs, as does the CIA
World Factbook. Both are valuable sources of in-depth
information about the BOTs, as are the websites of many of
the BOTs themselves. End Introduction and Summary.

What They Are
--------------


4. (SBU) The fourteen BOTs are, in alphabetical order,
Anguilla, Bermuda, the British Antarctic Territory, the
British Indian Ocean Territory (BIOT),the British Virgin
Islands (BVI),the Cayman Islands, the Sovereign Base Areas
of Akrotiri and Dhekelia on Cyprus, the Falkland Islands,
Gibraltar, Montserrat, the Pitcairn Islands, Saint Helena and
its dependencies (Ascension Island and Tristan da Cunha),
South Georgia and the South Sandwich Islands, and the Turks
and Caicos Islands. The BOTs are sometimes mistakenly lumped
in the popular British imagination with the Crown
Dependencies. However, Crown Dependencies are possessions of
the British Crown, as opposed to BOTs or colonies. Crown
Dependencies are the Channel Island bailiwicks of Jersey and
Guernsey and the Isle of Man in the Irish Sea.


5. (C) Facts and figures about each BOT are available on
the FCO's Country Profiles pages at www.fco.gov.uk. As one
FCO officer with extensive experience covering OT issues
recently told Poloff, these territories are "the remnants of
empire." Indeed, Britain acquired most of them at the apogee
of its national power and prestige, with dates of acquisition
ranging from the 17th to the early 20th century. Bermuda was
the first, settled in 1609; Britain claimed the last, the
British Antarctic Territory, in 1908.


6. (U) The overall population of the BOTs totals
approximately 200,000, ranging from 67,000 in Bermuda to
about 50 on the Pitcairn Islands. Some BOTs have a transient
population, but no permanent inhabitants. For example, the

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inhabitants of South Georgia and the South Sandwich Islands
include British officials, scientists, and support staff from
the British Antarctic Survey who maintain scientific bases on
the islands. The transient populations of the BIOT atoll of
Diego Garcia and Ascension Island in the South Atlantic
consist of U.S. and UK military personnel, as well as
civilian contractors of various nationalities.

Where They Are
--------------


7. (SBU) Gibraltar and the Sovereign Base Areas on Cyprus
are the only BOTs located in Europe and fall under EU
jurisdiction.

-Five OTs -- Anguilla, the BVI, the Cayman Islands,
Montserrat, and the Turks and Caicos Islands--are located in
the Caribbean Sea. Bermuda is situated in the North
Atlantic, off the U.S. coast on roughly the same latitude as
Charleston, South Carolina.

-The Falklands, South Georgia and the South Sandwich Islands,
Saint Helena, Tristan da Cunha, and Ascension Island are all
located in the South Atlantic. Tristan da Cunha is the most
remote inhabited island in the world, about 1700 miles west
of Cape Town.

-The Pitcairn Islands, officially named the Pitcairn,
Henderson, Ducie and Oeno Islands, are a group of four
volcanic islands in the South Pacific 1550 miles southeast of
Tahiti. Only Pitcairn Island - the second largest - is
inhabited.

-The British Indian Ocean Territory (BIOT),which comprises
the Chagos Archipelago and includes the atoll of Diego
Garcia, lies between Africa and Indonesia.

-The British Antarctic Territory comprises that sector of the
Antarctic south of latitude 60 degrees south, between
longitude 20 degrees and 80 degrees west.

So What IS a British Overseas Territory?
--------------


8. (U) The BOTs are constitutionally not part of the UK.
Each has a separate constitution. All have governors that
are appointed by Queen Elizabeth II, except the uninhabited
ones. For these, HMG appoints a commissioner, who is an FCO
employee. The governors and commissioners dually represent
HMG in the BOT and the BOT before HMG.


9. (U) Each BOT is constitutionally unique. The degree of
self-government depends on the BOT's constitutional
relationship with the UK. Larger, more developed BOTs are
largely autonomous in regard to their internal affairs, as is
the case with Bermuda, Gibraltar, the Falklands, and others.
The common thread among them is recognition of UK
sovereignty, acknowledgment of the Queen as the Head of
State, and British citizenship.


10. (U) HMG can and will intervene directly and
significantly in a BOT's internal government under
extraordinary circumstances, as is presently the case in the
Turks and Caicos Islands (see Paragraph 16). Larger BOTs,
such as the Cayman Islands and the BVI, have
popularly-elected legislatures and executive heads, and the
UK-appointed governors have limited control over local
affairs. For example, Gibraltar has an independent
parliament and the governor does not intervene in local
affairs; Bermuda is largely self-governed, and practically
independent in all areas other than foreign relations and
defense. The Falkland Islands and Saint Helena have elected
legislative councils, but the governors appointed by the
Queen are the heads of government. The Sovereign Base Areas
of Akrotiri and Dhekelia have no locally elected government
and are represented by the Commander of the British Forces in
Cyprus. Cypriots who live in that BOT are subject to the

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laws of Cyprus.


11. (SBU) The BOTs are supported in HMG by the United
Kingdom Overseas Territories Association (UKOTA). UKOTA acts
like a lobbying group in London; it exists to promote and
defend the common interests of the BOTs, as well as promote
cooperation and common positions among BOT governments.
UKOTA's members are the BOT governments themselves,
represented by a delegate named by each government.

Who are BOT Residents?
--------------


12. (U) With the signing of the British Overseas
Territories Act in 2002, nearly all residents of the BOTs
became full citizens of the UK. There are limited
exceptions. For example, those connected solely with the
Sovereign Base Areas in Cyprus are not entitled to full
British citizenship. Some BOT citizens had British
citizenship prior to the 2002 Act, e.g. Falkland Islanders.
The 2002 Act changed the official name of the areas from
British Dependent Territories to British Overseas
Territories.


13. (U) Although the BOTs are united by their common
British sovereignty, they are a mosaic of different cultures.
For example, Gibraltar is a melting pot of English, Spanish,
and North African influences. The Falkland Islands are
mostly populated by people of British origin, with more sheep
than human beings on the islands. Bermuda and the Caribbean
BOTs are vibrant mixtures of diverse cultures and languages.
Unsurprisingly, these sunny BOTs are popular tourist
destinations for UK residents. Some BOTs have unique
languages or dialects. For example, Pitcairn residents speak
"Pikern," a mixed language of 18th century English dialect
infused with Tahitian elements.

Economy
--------------


14. (SBU) Tourism and financial services account for most
of the revenue generated in the BOTs. Shipping and the sale
of fishing licenses are also revenue sources for many BOTs.
As philatelists know, the BOTs also generate revenue from the
sale of postage stamps. HMG has, for example, issued stamps
for the BIOT and the uninhabited British Antarctic Territory.
Many BOTs are self-sustaining, except for defense costs.
Saint Helena, the Pitcairn Islands, and Montserrat depend on
subsidies from HMG. The BOTs do not make a direct
contribution to the British Exchequer, although some
contribute towards the cost of the governor and his staff.


15. (U) Bermuda has an economy roughly the size of all the
other BOTs combined. Bermuda's economy is based on providing
financial services for international business and tourism.
According to the FCO, the Bermuda per capita GDP in 2007 was
USD 91,477.

Problems
--------------


16. (C) The FCO has identified several problems facing the
BOTs. According to the FCO, many BOTs face challenges common
to all small island economies, i.e. smaller countries risk
marginalization in a globalized economy. Some BOT economies
are fragile because of dependence on one or two sectors (e.g.
tourism and international finance). Some of the BOTs,
especially those in the Caribbean, are vulnerable to
drug-trafficking and associated crime. In some instances,
the lack of a developed civil society, a strong legislature
and/or a vibrant press mean there are few checks on the
executive. For example, in July 2008, HMG conducted an
inquiry into allegations of corruption in the Turks and
Caicos Islands' government. The embattled Premier resigned
and HMG intervened directly in governance (see ref A). The
final report of the Commission of Inquiry has been delayed
until the end of May, the FCO has confirmed. The islands are

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currently deeply in debt, due in large part to executive
mismanagement.

Who Else Claims Them?
--------------


17. (SBU) Some BOTs are sources of international controversy
based on competing sovereignty claims. Argentina invaded the
Falkland Islands in 1982, but Britain retook them after a
fiercely fought, seven-week-long armed conflict. Argentina's
constitution claims the Falkland Islands, although Argentina
agreed in 1995 to no longer use force to press its claim.
HMG continuously rejects requests for sovereignty talks
between the UK and Argentina, citing the strong preference of
the Falklands' population to remain British subjects.
Argentina also claims South Georgia and the South Sandwich
Islands.


18. (C) HMG will contest Argentina's claim for sovereign
rights (including oil and mineral rights) to seabed
surrounding Britain's South Atlantic Overseas Territories,
including the Falkland Islands. Great Britain will submit
its own claim for seabed rights for its South Atlantic
territories to the UN body that considers claims for seabed
rights. HMG does not presently plan to file seabed rights
claims for the British Antarctic Territory, but will reserve
the right to make claims in the future (see ref B).


19. (SBU) Gibraltar was ceded from Spain to Great Britain in
1713 by the Treaty of Utrecht. Although Spain claims
Gibraltar, the population overwhelmingly wants to remain
under British sovereignty. HMG has affirmed that it will not
consider independence or a power-sharing agreement with Spain
without the consent of Gibraltar's citizens.


20. (SBU) Mauritius claims the Chagos Islands (BIOT),
contending that the islands were "wrongfully detached" by the
UK before Mauritius became independent from British colonial
rule. The BIOT has been the subject of a legal battle
between HMG and some of the islands' former inhabitants, whom
the UK relocated off the archipelago in the early 1970s.
"Chagossians" and their advocates contest the legality of the
islanders' resettlement and seek the right to return (see ref
C).

Strategic Relevance
--------------


21. (C) Diego Garcia, in the BIOT, presently is home to a
joint U.S.-UK naval support facility. The atoll is of vital
strategic importance for defense purposes to the U.S. and UK,
including in support of operations in Iraq and Afghanistan.
(Note. For further information about the U.S. Navy Support
Facility on Diego Garcia see www.cnic.navy.mil/DiegoGarcia.
End Note.) Ascension Island (Saint Helena BOT) is the
location of Wideawake Airfield, which is a joint facility of
the RAF and the U.S. Air Force. The island was used
extensively by the U.S. during WWII and was integral to
British success in the Falklands War.


22. (C) The Sovereign Base Areas of Akrotiri and Dhekelia
on Cyprus are geographically distinct military bases. RAF
Akrotiri is an important aircraft staging point and one of
the few major RAF stations located outside the United
Kingdom.


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