Our objective should be for all the Dependent Territories to have completed every item on the checklist by the end of 1999. We will be reviewing progress at the end of 1998. That way we can have confidence that there is a level playing field, to ensure fair competition between them.

The second element of the plan is for every Dependent Territory with a financial services industry to have the structures they need to regulate their industry effectively for themselves. I will be writing to all Chief Ministers in such Territories, asking them to ensure that their regulatory authorities are genuinely independent, if necessary through ring-fenced funding from an industry levy. Independent regulatory authorities, free from business or political interference, have a key role. They are responsible for monitoring how the regulations are being applied, and for publishing an annual report on their activities. They will allow us, and the rest of the world, to have confidence that the Dependent Territories have both the capability and the will to address with these issues transparently.

Financial Control There is one other financial issue on which reform is needed, and that is borrowing by Dependent Territories. The record of the Dependent Territories is a good one. Borrowing so far has been impressively prudent, and we recognise the role that it can play in stimulating economic development and investment.

However, the British government has a legitimate interest in any debts taken on by British territories. We want to ensure that our position is defensible to Parliament, and so we are proposing that all Dependent Territories seek clearance from the British government for official borrowing above a certain threshold, which we will set following consultation with you. Obviously different Dependent Territories will have different financial strengths and weaknesses, and we will need to work out tailored arrangements for each. I do not believe that this will result in a major change in practice from what happens already. But I do believe that it puts this particular aspect of our relationship on a firmer, and more transparent basis.

iv. Human Rights The last important aspect of our partnership that I want to address is human rights. We respect the different cultures and customs of each Territory. Their diversity is one of the abiding strengths of our partnership. I have no desire to turn the Dependent Territories into mirror images of Britain. However, I believe that those territories that choose to be British must at the least abide by the same basic standards of human rights, openness and good government we expect of ourselves. And being British means their legislation must comply with the same international obligations to which Britain is subject, such as the European Convention on Human Rights and the UN International Conventions. The Dependent Territories are rightly proud of their observance of human rights. I share your pride. But there are still areas we need to look at -- capital and judicial corporal punishment; and full compliance with international obligations: The British government opposes the use of judicial corporal punishment. And for the first time under the new government Britain has now signed up to the call for the universal abolition of the death penalty. Nearly all the Dependent Territories have the same statutory limits on the death penalty as Britain. It would be desirable that all the Dependent Territories shared the British position on both the death penalty and on judicial corporal punishment, and I hope that those few who need to change their law can do so soon.

We need to make sure that the laws of the UK and her Dependent Territories are fully in line with the UK's international human rights obligations. We will be discussing with some of the governments of the Dependent Territories where there may be shortcomings, and how we can best remedy them.

vi. The name The last aspect of getting the partnership right is getting the name right.

"Dependent Territories'' is the wrong name for today's territories, which are energetic, self-governing and anything but dependent. It does not chime with the principles of our partnership, or even with the notion of partnership itself. It is a phrase that implies reliance, and ignores the territories' high degree of autonomy. You have made clear you share this feeling. That is why we have decided to rename the territories "United Kingdom Overseas Territories''. This will need legislation. It will be an important statement of the modern character of the territories, and of our modernised partnership.

Conclusion These are the principal conclusions of our review. The next stage will be to work out the details of the package I have outlined today. My officials are working on this with other government departments. They will consult with the leaders and representatives of all the Overseas Territories. In the light of these consultations we will bring before Parliament a White Paper describing in full the modernised partnership we want to create, and the action we need to take to create it.

I am very pleased that the Chief Minister of Gibraltar is to reply on your behalf. Every overseas territory is a special case. Gibraltar is unique. It has an extraordinary history, and is the only Overseas Territory inside the European Union. It is a sign of the way your Association successfully brings together distant and diverse territories that Gibraltar will speak for you all today. I would like to use this forum to restate publicly Britain's commitment to the people of Gibraltar. We will continue to respect their wishes. There can be no change in the sovereignty over Gibraltar without their consent. Our commitment to them, and to all the peoples of the Overseas Territories, remains as strong as ever.

I believe that if we can together implement the reforms I have outlined, then we will have a modernised, strengthened partnership between Britain and her Overseas Territories. We will have a partnership based on mutual trust and respect. We already have a firm basis from the past, founded on centuries of shared history. Now I offer a stronger basis for our partnership for the future, as together we face a new Millennium.