The move is part of a major review of Britain's relationship with the territories. At its heart is the idea of a "modernised contract" between the UK and its dependents.
The territories, which are scattered around the globe, will become known as British Overseas Territories and a special unit will be set up in the Foreign Office to ensure better dialogue between both sides.
The review was announced on Wednesday by the Foreign Secretary, Robin Cook, at a conference in London.
Mr Cook stated his determination to forge a "stronger, better partnership" between Britain and the remains of its empire, as well as the government's intention to improve overall efficiency through the reforms.
No bar on independence
Addressing the Dependent Territories Association, Mr Cook told the visiting chief ministers that the right to self determination in dependent territories was "paramount", indicating that Britain will not block any bid for independence.
But he reassured reporters, when asked, that the "territories answered unanimously that they are content."
He stressed the importance of a two-way relationship, saying that Britain "won't shirk its responsibilities, but both sides have responsibilities."
While the aim is to see territories running their own affairs as much as possible, the UK will continue to help those in need.
Mr Cook set out ideas for change in five key areas:
Citizenship proposals set to cause stir
Mr Cook's speech reflects interim conclusions of the Government's inquiry into dependent territories. He is expected to confirm consultation with all territories, before drawing up a White Paper "in a matter of months".
It is the citizenship proposals that look set to cause the biggest stir, although the Foreign Office has denied a rift between Mr Cook and home secretary Jack Straw over the plans.
A government source said it was "highly unlikely" that many of those eligible would take up the citizenship offer.
![[ image: width=150]](/olmedia/50000/images/_53359_pam150.jpg)
The Premier of Bermuda, Pamela Gordon, said her countrymen were not going to flood Britain.
"The reality is that most persons are not looking to move to Great Britain. We have to make that clear," she said.
"Many of us have per capita incomes that are either at the level of or greater than Great Britain. I think it's more in relation to assisting our young people from an educational perspective."
The Empire is no more, but it's not all over yet
(04 Feb 98 | UK)
Cook's dozen - the 13 far-flung parts of the world that make up the 'empire'.
(04 Feb 98 | UK)
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