OT Dept. HeadImpressed

Head of the FCO's Overseas Territories Department(OTD) Mr. Alan Huckle left the Cayman Islands with high praisefor the current fiscal measures being taken to remedy the country'seconomy.

"I've had a very useful and comprehensiveprogramme," commented the OTD chief shortly before his departure.He felt it was very beneficial, for example, to have been hereat the start of the budget approval process. He had been ableto listen to the budget address and to talk with persons involved.

"I am very impressed with the measuresbeing taken to restructure debt to keep the debt-service ratioto within ten percent. While the budget deficit is a wake-up callfor all of us, the measures show government's commitment to takea grip on the economy, while putting in a new financial managementsystem that will tie the budget process to a strategic plan."

Mr Huckle ended a five-day visit to GrandCayman last Saturday, 8 December, with new insights into the budgetprocess, perspectives of the business community, progress of theconstitutional review and social issues.

The visit was Mr. Huckle's first to theCayman Islands since being appointed OTD head in June. He hadpreviously been here in 1997 as head of the Dependent TerritoriesRegional Secretariat based in Barbados. During last week's visit,Mr. Huckle met with government and private sector officials, includingmembers of Executive Council and the Legislative Assembly, theheads of the Department of Tourism, the Financial Reporting Unit,the Monetary Authority, Budget and Management Unit, Departmentof Environment, the Prison Service and Department of Social Services.He also had discussions with the constitutional commissioners,the constitutional adviser and the board of the Chamber of Commerce,and visited Northward Prison and the West Bay Lock-up.

On the constitutional review, Mr. Hucklewas happy with the degree to which there had been public consultationand with the wide level of interest. He said that the review fitwith the UK / Overseas Territories partnership process, in thatthe UK was encouraging constitutional modernization in the territories.The key to any constitutional development was "discussionand transparency." In that regard, he said, "You'rewell on the right track."

Social issues that emerged as areas of concernand focus in discussions included domestic violence, drug-relatedcrime, and juveniles. On the latter, Mr. Huckle said he got thesense that authorities "are very keen to ensure that properprogrammes are in place to deal with juveniles and to manage juvenileoffenders."

The visit also gave the OTD head a chanceto update persons on issues of interest to them, such as Britishcitizenship for Overseas Territories citizens. "I was ableto tell people about the progress on the British citizenship billwhich is now in its second reading in the House of Commons. We'restill on target for approval early in the new year," he said."We are now discussing with the territories the practicalissues of implementation, for example, passports."

Regarding some of the other issues coveredin the white paper on UK / Overseas Territories partnership, hesaid that following the signing of the Environmental Charter lastyear, territories were now drawing up their own action plans.These would be reviewed next year. On the issue of human rights,that was being taken forward in Cayman as part of the currentconstitutional review.

On financial services management, he citedthe expected passage of legislation to make the Monetary Authorityindependent next year as commendable. The fact that the CaymanIslands had now been de-listed by the FATF, and that it was thefirst jurisdiction to sign a tax information exchange treaty withthe USA, were positive developments which had recently elicitedpositive commendation from two UK ministers. He also anticipatedthat the signing of the treaty, added to the other measures, wouldresult in increased trust of the Cayman Islands on the part ofthe US authorities.

Placing his visit to Cayman in context,Mr. Huckle explained that, being relatively new as head of theOverseas Territories Department, he felt it was very importantthat he "get around to all the territories." He hadrecently visited the Falklands and was leaving Cayman for Barbadosfor meetings with the new regional financial services adviserKevin Mann and with John White, the previous OTD head.

Asked what were some of the FCO/OTD's prioritiesat this time, Mr. Huckle said, "A key aim is to encouragethe greatest degree of self governance, but to make sure thatthere is good governance, and sustainable development." Tofacilitate this sustainable development, he added, "one ofour aims is to assist where possible with economic diversification."

Summing up, Mr. Huckle said he was struckon this visit by how sophisticated the Cayman Islands is. "Infrastructureis excellent. It has a strong public service and a vast wealthof expertise it can draw from, much more than many of the otheroverseas territories and many independent states."

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