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the scheme. The quota has subsequently been extended annually at
the existing level, pending the review.
5. From our point of view the reasons for a retention of the quota
still hold good: its abolition would be a blow to Hong Kong in
particular and be interpreted there as yet another example of the
B weakening of HMG's commitment to the territory. Lord Glenarthur
commented in this sense in last year's round of correspondence.
C
6.
The Home Office have completed the initial stage of the review,
but do not now propose to continue with the subsequent stages as originally envisaged: in his letter of 11 December 1987 (not copied
to us at the time) Mr Renton argued that the review would become
increasingly academic as 1997 approached: when Hong Kong ceased to be a dependent territory the political case for a quota would (in his view) fall away. He would therefore like to see the quota
abolished after 1996.
7.
It is helpful that the Home Office now envisage the
continuation of the quota until 1996. But it is too early to say
whether the quota should end after that date. We would have to weigh up nearer the time the political considerations (and the prevailing conditions to the UK labour market) against the Home
Office's desire to abolish the scheme as soon
soon as possible.
8. In any case, we might well continue to want to see a quota for
other dependent territories, irrespective of the Hong Kong aspect.
St Helena, the other main beneficiary of the present quota, will remain HMG's responsibility for the foreseeable future. The quota is certainly appreciated in this and the other territories
concerned.
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