[toyg]

Cayman Islands is a British Overseas Territory. Technically, the installed Governor could shut anything down at his wish. In practice it’s unlikely to happen, because (like with many British constitutional matters...) both the locals and the UK have an interest into maintaining a degree of ambiguity in current arrangements.

This said, when the UK government is fully convinced that Caymans “should jump”, they eventually jump.

[Havoc]

>both the locals and the UK have an interest into maintaining a degree of ambiguity in current arrangements.

Interesting take on overseas territories. Fuzzy sure, but it never occurred to me that it's intentional

[toyg]

- provides plausible deniability for unpopular or suspicious measures at both ends

- keeps open the option of direct subsidies and favourable treatment for Cayman. I believe most BOTs are not financially self-sufficient, including Caymans.

- keeps open the option of UK re-taking direct control in some circumstances (military requirements, oil discoveries etc).

- maintains substantial independence in practice.

For small territories, BOT arrangements provide the best of both worlds, at the low low price of occasionally bowing to UK authorities.