CONFIDENTIAL

D

The Hong Kong Government would in any case not want to see the

Quota abolished. Their views are set out in Hong Kong telno 49.

4.

5. The Quota runs by calendar year. This year's scheme has not yet

started: the Department of Employment are awaiting resolution of the

issue between the Home Office and ourselves. Employers in the

United Kingdom, nearly all in the catering business, apply under the

scheme on behalf of the personnel they require to recruit in Hong Kong. The system is simpler and takes less time than normal work permits, which are anyway not generally available to semi or

unskilled workers.

Argument

6.

It would be worth deciding now to abolish the Quota if we could

make use of this decision in the course of the passage of the

nationality legislation through Parliament. It may might serve as a

sop to the anti immigration lobby; but the numbers involved are so

small (less than 150 per year) that it is hardly likely to have a

significant impact one way or the other. Indeed it is unlikely that

many MPs are even aware of the existence of the Quota.

7. On the other hand, if we were to announce the abolition of the

Quota as part of a quid pro quo for the nationality package, this

might arouse the wrath of Labour MPs and others, who would see this

as an indication of an elitist approach to emigration from Hong

Kong. (The argument would run that we were putting the interests of

the rich and influential elite before those of cooks and

bottlewashers.)

8.

For these reasons, I think it would be better if we were to

avoid committing ourselves to a decision about this Quota until

after the nationality legislation has been introduced in Parliament,

when we can better judge the prevailing political mood.

ARPALL

A R Paul

CONFIDENTIAL

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