CONFIDENT IAL

Redacted

under FOI exemption 27(1)

attention but made it very clear that the HKG should harbour no illusions that there was the remotest prospect of a change in Cabinet's position on numbers, The HKG team were told repeatedly (a point reinforced in the Home Office letter) that the scheme must be designed to incorporate all categories of beneficiary within the 50,000 total, and they will therefore proceed to refine the scheme on that basis. Tactically it would be a grave mistake to consider reopening this issue now, Raising it at all in Cabinet would necessarily create a delay which might put the Bill timetable in doubt, and more importantly, any suggestion that the Government were attempting to create loopholes or "extras" in the scheme would fuel the fears of those who oppose the Bill and would make passage evan more difficult.

6.

The task of accommodating all categories

within the 50,000 figure and keeping to the 2:1 ratio is nevertheless extremely difficult and has severe implications for the distribution of places within the public sector; either numbers must be cut drastically (for example in the Disciplined Services quota) or the ratio must be relaxed. The HKG team made it clear that in the circumstances it should be for HMG to make provision for MOD LE staff and the staff of the BTC, British Council etc.

CONFIDENT IAL

Thani

J Morris

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