BACKGROUND

CONFIDENTIAL

1. France is one of a number of EC countries taking measures to reassure key local staff working for international companies in Hong Kong. The others are Germany, Belgium, Luxembourg, Denmark and Italy.) Under the French scheme, a small number of key staff in French firms (approximately 20-30) will be given full naturalisation and a further 1200 or so will be given travel permits allowing them to come to France (and subsequently apply for naturalisation).

2. The French have been reluctant to reveal any details about their scheme in public because of fears that this would damage their relations with Peking. But they agreed that we could refer to it in general terms.

Hong Kong Department

4 December 1990

CC1ABE/1

CONFIDENTIAL

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