CONFIDENTIAL

HKD 243/12:243/12

-DEC1988

IS

R:/ Lord Ghrow ther

Glena

·

Меним

Mr Wood

Mr Footman

Home Alice

have promised

boreply

swiftly. From the Private Secretary

T MOR

10 DOWNING STREET

LONDON SWIA 2AA

W/12

Mc Gillmane

Mir. Nicobarten

8 December 1988

The Prime Minister has considered the Home Secretary's minute of 2 December about ways of attracting Hong Kong business talent to the United Kingdom. She has also seen the Foreign Secretary's minute of 6 December.

The Prime Minister accepts it would not be practical to amend existing legislation and that we must proceed by using the discretion given to the Home Secretary. But she would be grateful if the Home Secretary would consider further a number of points:

-

Is the Home Secretary sure that what he proposes is really the maximum he can offer within the existing statutory framework?

Would it be within the Home Secretary's discretion to dem time spent in Hong Kong with our encouragement or at our request as time spent here for the purposes of qualifying for settlement?

Is there scope for altering the rules as opposed to the law? For instance, would it be possible for people investing a certain sum in Britain and providing employment to acquire settlement here in 3 years rather than 4? Any such change would have to apply to all nationalities not just Hong Kong.

Can we not be more forthcoming and explicit in what we say about the opportunities available to Hong Kong businessmen? The Prime Minister would like the Home Secretary to draft a statement on the position which could be handed to selected people.

Depending on the Home Secretary's reply to these points, the Prime Minister may wish to have a meeting to discuss them.

I am sending copies of this letter to the Private Secretaries to the Chancellor of the Exchequer, the Foreign and Commonwealth Secretary, the Secretary of State for Trade and Industry, and to Sir Robin Butler.

Philip Mawer, Esq.,

C. D. POWELL

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