Reference... G68AAK

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Mr Hague, Hong Kong Department

GIBRALTAR: POSSIBLE ENTRY SCHEME FOR HONG KONG BDTCS

1. I attach a copy of Gibraltar Telegram 32, which gives in paragraph 4 a brief account of Mr Maude's discussion with the Gibraltar Chief Minister about Hong Kong BDTCS.

2. Mr Maude undertook to let Mr Bossano know the details of the scheme we were proposing to introduce for Hong Kong BDTCS coming to Britain, and what would be the preferred method for Gibraltar adopting a similar scheme. I would be grateful for advice from you and copy addressees so that we can recommend to Mr Maude a line to take with the Chief Minister.

3.

It seems to me that the simplest way to give Gibraltar details of the UK scheme would be to send a copy of the UK legislation once it has been finalised. As I understand it, there are basically two

In WITION Gibralta

nkgir adopt a similar scheme: either the UK scheme including proviston for the extension to dependant territories by Order in Council, or by Gibraltar simply passing"Stmttar Legislation through the Gibraltar House of Assembly. The latter course seems more appropriate, particularly in the light of Mr Maude's wish not to complicate the UK scheme any more than is absolutely necessary.

4.

One further point to bear in mind is that, as I understand it, any Gibraltar BDTC has the automatic right to full British citizenship. We must therefore clearly try to ensure that Gibraltar does not effectively become a back-door for Hong Kong BDTCs to get into the UK. This is clearly not the Chief Minister's intention (he has said that he only wants to attract between 200 and 250) but it would seem advisable to ensure that there are no loop-holes.

M J L Kirk

Southern European Department

Rm No E206

Tel No 270 2965

CC:

30 January 1990

Mr Harrington, NTD Mr Chamberlain,

Legal Advisers

CODE 18-77

G68AAK

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