The British government retained control over all foreign policy and defense matters for these dependent territories. The two territories participated in the Commonwealth of Nations (see Appendix B) and, because of their ties to Britain, were considered states associated with the European Economic Community, a status that greatly facilitated trade with the rest of Western Europe. No British Army or British Navy forces were based in the two territories. Military security was provided by British forces stationed in Belize. In addition to the Commonwealth of Nations, both the Cayman Islands and the Turks and Caicos Islands belonged to the Caribbean Development Bank.

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Source: U.S. Library of Congress