ENTAL

Government's policy was not a one-way process of assimilating Commonwealth citizens to aliens. On the other hand, when the Department of Employment have produced proposals acceptable to thnir Miniator, he will have to put them to hie colleagues; and there may be reasons for us to advise our Ministers to dissent from them in whole or in part. So it is hardly for us to press for an early announcement. If any eventual announcement coincides with those on a and b, that should have its own advantages.

5. There remains the question what should be said about à (operation of the new work permit scheme). Certain fundamental points can in any event be repeated: no permit except for a specific job; no change of job in the first four years except with approval. Beyond that, the choice seems to lie between

i. announcing that the issue of permits would not be. subject to any numerical limit either for citizens of independent Commonwealth countries or for aliens, but that the criteria for these two categories would be different; and describing the new criteria for the Commonwealth; and

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ii. saying that the operation of the new work permit scheme was under the Bill a matter for decision by the Government from time to time in accordance with changing circumstances; that a final decision on how the scheme would operate initially was being deferred until the position of UKPH had been settled; and that a full statement of the Government's intentions would be made at a later stage in the Bill's progress.

The first alternative will inevitably lead to questions about the effect of the change of criteria on the rate of Commonwealth entry for employment; and it will not be open to Ministers to justify the reduction involved as a means of improving the position of UKPII, because the time will not have come for announcing the increase in their special vouchers. The second alternative entails maintaining virtual silence for the time being on one of the most important parts of the Government's proposals for future immigration control; the difficulty of taking this position is evident, and understandably is felt very strongly by the Department of Employment. On balance, however, I suggest that the disadvantages of the first alternative outweigh those of the second.

6. We shall need guidance from Ministers on how these matters should be dealt with in preparing a brief for Second Reading. Mr Covington has also asked that his Secretary of State should be informed of how the Home Secretary intends to deal with these matters, and should have an opportunity to comment. I am therefore submitting a draft letter which, if approved, Mr Angel might send to the Private Secretaries at the Department of Employment and the Foreign and Commonwealth Office.

? To Mr Angel.

WIB

W J BOHAN

B2 Division

18 February 1971

CONFIDENTIAL

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