CONFIDENTIAL

France

Federal Republic

of Germany

Italy

The Quai agree that we may say in public that

France is one of the countries taking measures

to reassure essential staff working for

international companies in Hong Kong. Scheme

is expected to cover about 15,000 heads of

households (ie about 15% of locally-employed

staff).

FRG's scheme to provide safety net for up to

1,000 Hong Kong personnel almost finalised.

Confirmation expected at beginning of April.

Italians considering scheme to give long-term visas to several hundred employees of Italian

companies in Hong Kong which would give them

right, if need arose, of residence in Italy.

Italians have asked us not to refer publicly to their scheme until it has been agreed by

Ministers.

Japan

Luxembourg

Despite being the largest foreign investor in

Hong Kong, Japan is unwilling to help.

Luxembourg unlikely to publicise their scheme

locally, but will not object to our making

public reference to it once it has been agreed with Ministers. Will issue multiple entry visas backed by guarantees of work and residence permits to about 15 employees of Luxembourg companies in Hong Kong. The MFA

have shown us a draft paper setting out details

of the scheme.

Netherlands

ALAADA

Following Mr Maude's visit on 21 March, the

Dutch Foreign Minister has agreed to look again

at possibility of issuing advance residence

permits which would not require legislation.

At their request, we have given Dutch MFA

details of similar schemes being considered by

CONFIDENTIAL

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