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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 
 
LONDON 00001039  002 OF 004 
 
 
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 
 
LONDON 00001039  003 OF 004 
 
 
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 
 
LONDON 00001039  004 OF 004 
 
 
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. 
 
 
Visit London's Classified Website: 
http://www.intelink.sgov.gov/wiki/Portal:Unit ed_Kingdom 
 
TOKOLA