FROM: H. d. miller, M.P.

CONFIDENTIAL

Mr

Ham,

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аку

Spoke to Messrs. Emery a

McDonough, HD. Agreed this is

probably related to the Sundberg

Enter: Nat. 27/8

HOUSE OF COMMONS

For info,

Fat Cats approach. They will show fwering

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draft reply.

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David Waddington, QC. MP.

Home Office,

50 Queen Anne's Gate, London.

SWIH 9AT

Dear David

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LONDON SWIA OAA

건통

1919

None of these

pornrs seems in

4/8 practice to be discriminatory

4th August 1986

Ry

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Mr. Wadd. will promoty

IMMIGRATION AND RESIDENCE REQUIREMENTS - IMMIGRATION RULES

Position of Hong Kong Residents

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A leading Hong Kong lawyer and close personal friend, has sought my advice regarding recent changes in the operation of the Immigration Rules as a result of which he and others in Hong Kong believe that Hong Kong residents are being treated less favourably than others seeking to establish themselves in Great Britain. He voiced the widespread belief that this might be at the instigation of the Chinese People's Republic.

I naturally replied that I found all of this very difficult to believe and would wish to check it. He then gave me examples of changes in requirements relating to:

1. Right of establishment for people of independent means:

2. Residence requirements for the above:

3. The ten year convention for acceptance as a UK resident.

CHERY

1 2 AUG 1986

при

HKK 340

He gave me the name of a lawyer in London who specialised in such cases. On consulting this London lawyer I was told that he had no direct evidence of prejudicial treatment of Hong Kong residents, but in view of the rumour in such quarters in Hong Kong coupled with the suggestion that the changes were at the instigation of the Chinese People's Republic. I should be grateful for your confirmation of the point as well as for your comment on the exercise of discretion by your office in the operation of the Immigration Rules in connection with the above three points.

As far as 1. is concerned, I was under the impression that the would-be resident had to show free means of £150.000. The lawyer told me this needed to be accompanied by a close connection with the U.K. the interpretation of this being discretionary, and that also for discretion it was possible to show available means of £500,000 in lieu of the close connection.

As far as 2. is concerned. I was told that it had been the previous practice to require only sporadic visits to this country over the four years prior to an application being made for settlement with a longer period in the fourth year. But that now through the exercise of discretionary powers longer annual stays were being required in each year of the period. thus effectively making it impossible for somebody to continue a business in Hong Kong.

Cont/...

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