statement yesterday to the House of Commons on his White Paper on Britain and the Dependent Territories.

Madam Speaker, with permission I will make a statement on the Dependent Territories.

We have completed a major review of the relationship between the United Kingdom and the Dependent Territories. Its objectives were: to establish better and more effective communication between the Government of the United Kingdom and the Governments of the Dependent Territories; to improve the status of the residents of the Dependent Territories; and to ensure that the United Kingdom could discharge its international responsibilities in respect of the Dependent Territories.

During the review we have consulted widely. We have listened to the governments, opposition leaders and governors of the Dependent Territories.

I am today publishing the White Paper "Partnership for Progress'' which sets out the results of that review. It provides the basis for a renewed contract and modern partnership between the United Kingdom and the Dependent Territories.

It is a striking measure of the degree to which the Dependent Territories value that partnership that none of their Governments expressed any desire during the review for full independence. They all want to preserve the constitutional link with the United Kingdom, which has provided all of them with security and most of them with a high level of prosperity.

Relationship with London The review has already led to a series of improvements in the arrangements within government for our relationship with the Dependent Territories.

The Secretary of State for International Development and I have established parallel structures to deal with the Dependent Territories in our departments.

We have established a Ministerial Liaison Committee to ensure that our activities and policies are fully co-ordinated.

Within the Foreign Office my Noble Friend Baroness Symons has been appointed Minister with specific responsibility for the Dependent Territories. That responsibility was previously split between a number of geographic departments. The changes we have made will ensure a unified Ministerial responsibility for policy on all the Dependent Territories except Gibraltar and the Falkland Islands.

In order to improve liaison with the Dependent Territories, as well as within Whitehall, we will be establishing a Council of the Territories, which will include the Chief Minister or equivalent of each Dependent Territory and will be chaired by the Minister for the Territories. Its first meeting will be convened later this year in advance of the Commonwealth Heads of Government meeting, in order that the UK can fully reflect their views, particularly in the discussions on the special challenges to small island states.

The Name The White Paper confirms our commitment to drop the title "Dependent Territories''. It is the wrong name for today's territories which are energetic, self-governing, and anything but dependent. It also does not fit the concept of partnership on which we want to build our relationship.

We will be introducing legislation to rename the territories "United Kingdom Overseas Territories'' and in the meantime will be adopting that title in all government communications.

Citizenship There is a strong sense of grievance in many Overseas Territories that their right of abode in Britain was taken away from them, and that is felt particularly strongly in St. Helena. The residents of the Overseas Territories are proud of their connection with Britain, but often puzzled that Britain appears not to be proud to have them as British citizens.

I can announce today that we will be offering British citizenship to all those residents of the Overseas Territories who wish to take it up.

This improved status will be welcomed throughout the Overseas Territories. It will give its residents the right to travel freely throughout the European Union, and will enable their young people to support themselves through work experience while they study in Britain.

We do not expect this change in status to result in any substantial number taking up permanent residence in the United Kingdom. Seventy percent of the citizens of the Overseas Territories have a higher per capita income than the United Kingdom and their residents have no incentive to leave on a permanent basis.

The offer of right of abode will be on a non-reciprocal basis. The unanimous view in consultations with the Overseas Territories was that they were anxious that their small communities did not have the capacity to absorb uncontrolled numbers of new residents. Our decision on this follows the precedent set by Gibraltar and the Falkland Islands whose existing right of abode is also non-reciprocal.

We are not extending the offer of citizenship to British Dependent Territories Citizens who were associated with the British Indian Ocean Territory and the Sovereign Base Areas in Cyprus.

Good Government Although most Overseas Territories have prosperous economies, the United Kingdom recognises its obligation to promote the development of those territories that need assistance. In the Department for International Development, my Honourable Friend the Parliamentary Under-Secretary has been appointed Minister responsible for the sustainable development of the Dependent Territories.

The White Paper on International Development confirmed that "The reasonable assistance needs of the Dependent Territories are a first call on the development programme.'' It is not possible for all the smaller Overseas Territories to promote development on their limited resource base alone. We will therefore be maintaining a programme of development aid for the poorer territories to support their economic infrastructure, their social provision and their good government. In the case of the two least developed territories, Montserrat and St. Helena we will be continuing budgetary aid.

International Obligations The White Paper demonstrates that the United Kingdom is fully committed to meeting its obligations to the Overseas Territories. Any partnership must have obligations on both parties.

The United Kingdom accepts its responsibility for the defence of the Overseas Territories and for their international representation. In return, we have to insist on the governments of the Overseas Territories fulfilling their obligations to meet the standards of international organisations in which the United Kingdom represents them. There are two issues which are of priority in meeting those obligations.

The first is to match the best international standards in financial regulation. Many Overseas Territories have made substantial progress in proper and transparent regulation of their large financial sectors. They have recognised that a sound reputation for financial regulation is a prime asset in maintaining the prosperity of a sound financial sector.

Nevertheless some Overseas Territories do not yet fully meet international standards. We will therefore be requiring all Overseas Territories, by the end of this year, to meet in full international standards on money laundering, transparency and cooperation with law enforcement authorities, and independent financial regulation. The globalisation of international finance means that we cannot tolerate a weak link anywhere in the chain without exposing investors to risk.

The second area of priority is in human rights. Those Overseas Territories that choose to remain British must abide by the same standards of human rights and good governance that we demand of ourselves. We require our Overseas Territories to maintain legislation that fully complies with the European Convention on Human Rights, and the International Convention on Civil and Political Rights, to which the United Kingdom is a party.

Specifically, we require changes in the law in a minority of Overseas Territories which retain corporal punishment and criminalise consensual homosexual acts in private. Our strong preference is that the Overseas Territories should enact the necessary reforms themselves, but we are ready to make such reforms by Order in Council if they fail to do so.

The Environment One important duty of the United Kingdom, as the sovereign authority for the Overseas Territories, is to preserve their rich and unique environment. Taken together the Overseas Territories contain ten times as many species of animals and plants as the United Kingdom. The British Antarctic Territory acts as a barometer for climate change and atmospheric pollution it was there that British scientists discovered the hole in the ozone layer. Coral reefs in the Caribbean territories and Bermuda are as uniquely beautiful as they are fragile.

We propose to develop an Environment Charter between the United Kingdom and our Overseas Territories. This will help the Overseas Territories to build up their capacity to protect their environment and will ensure that the United Kingdom can fully reflect their interests in international agreements.

As support for work under this Environment Charter the United Kingdom will be providing funding of 1.5 million over the next three years.

Conclusion Madam Speaker, the White Paper sets out the basis for a modernised and strengthened partnership between the United Kingdom and our Overseas Territories. We already have a firm basis for that partnership founded on three centuries of shared history. I believe that the proposals in the White Paper will give us a confident basis for our future partnership into the next century.

Citizenship offer: Foreign Secretary Robin Cook Graphic file name: ROCOOK