CONFIDENTIAL

3.

A number of policy issues remain to be resolved between

(a) Membership of Steering Committee.

British firms

in Hong Kong are keen that Peter Heap, Senior British

Trade Commissioner, should sit on the Governor's

Advisory Steering Group, to ensure that British

interests are properly represented in the selection

process. The British Chamber of Commerce would also

like a representative of their own on the committee.

await the Governor's decision.

We

(b) Assurances for Locally Engaged (LE) Staff of the

British Trade Commission and British Council. BTC and

BC staff will not qualify for citizenship under the

scheme. There is therefore a risk of losing LE staff to

other organisations (eg the US consulate), who can

provide assurances to their staff.

been pressing Home Office Ministers.

FCO Ministers have

(c) Definition of a British Company. The Governor is

legally responsible for determining which is a British

firm for the purposes of allocating "British links" points under the scheme. But he would prefer that the practical work involved is done by a committee bsed in

London representing FCO, Home Office, DTI and that the

results are given to him as "advice". We are discussing the implications at official level.

(d) British Links Points. British firms do not believe

that the 35 points available under the points scheme for service with a British organisation will be sufficient

to ensure that their employees achieve citizenship. In

fact, trial computer news by Hong Kong Immigration

Department indicate that, all other factors being equal, 35 points will be sufficient to decide the competition. Furthermore, since service with the Hong Kong

Government also attracts British links points, there is

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CONFIDENTIAL

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