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that they agreed to return to Hong Kong for a minimum of ten years. Cable and Wireless at present employed 18,000 people in Hong Kong. They were losing about 200 a year. The loss was increasing at a rate of 30% a year. By 1997 Cable and Wireless would lose 5,000 employees. If the Government could introduce an additional safety net scheme, he would be willing to use his influence to damp down criticism in Hong Kong of the British Government's right of abode proposals.

5. Mr Maude stressed the importance of the major businesses in Hong Kong not criticising the Government's right of abode scheme when it was announced. Criticism would only accelerate departures from Hong Kong. It would also complicate the Government's task of pushing its proposals through the House of Commons. He urged Lord Sharp and other prominent businessmen to lobby backbenchers to explain to them that the Government's scheme was designed to keep people in Hong Kong not to bring them to the UK.

6. Lord Sharp said that it would be extremely helpful to have advance notification of the scheme, particularly if it were to be announced while he was in Hong Kong. Inevitably he would be asked to comment to the press. Mr Maude said that he hoped to give some advance warning of the general outlines of the scheme to Lord Sharp and other key people.

ANR. Michigli.

C

A NR Millington

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