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PS/PUS

1 We have a strong interest in the good government of the dependent territories such as Hong Kong: and UK expatriates working in dependent territory governments have a good claim to being regarded as 'Crown Servants'. It is a claim which is as strong, if not stronger, than the claim of UK nationals (other than those seconded) working in Brussels. If any exemptions are to be made, I could not concur in the only one being in favour of the E. C.

2 There is a choice, Either we stick with the proposition that Crown servants means those directly connected with Crown service in the UK, or we make exceptions to this proposition, including those in dependent territories. I would have proposed this but I can understand that Ministers might consider that if an exception were made there would be invidious comparisons with businessmen; and I would, if reluctantly, accept this. I do not believe that we could defend in the dependent territories, or with businessmen, an exception only in favour of those in the E.C: and on these grounds would recommend either inclusion of UK expatriate colonial civil servants or leaving out the bracketted paragraph. In order not to overload the tolerance of the Home Secretary, I believe the latter is the more prudent

course.

28 November 1980

Edward Youde

cc:

PS/LPS PS/Mr Luce PS/Mr Blaker

PS/PUS

Mr Hannay Mr Donald FCD(I) HK&GD

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