E.R.

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by means of entry clearance assurances.

11. We will discuss with colleagues your concern about the number of places proposed for Ministry of Defence locally engaged staff. We have noted your view that the UK Government should find other ways of providing for such staff and that they should be regarded as generally less vulnerable than members of the HKG protective services.

12. We will consider the role of a UK team in Hong Kong and give you an early indication of its proposed size. A possible function would be to issue certificates of citizenship on behalf of the Secretary of State but we would envisage no role for it in the selection process.

13. We will consider whether the issue of British passports to beneficiaries of the scheme should be undertaken in the UK, by a UK government outpost in Hong Kong or by HKG acting as agents for the UK Government.

14.

We noted your reservations about the Approved Secondment Scheme. We will sound out firms in the UK and

the UK and during Liz Grimsey's visit to Hong Kong in order to assess whether adequate demand exists, and advise Ministers accordingly. We would in any case envisage a small allocation.

15. We will consider the draft form in more detail (including the criteria proposed for "British links") and let you have any further comments. We note the intention that the form be in English only.

16.

We will consider what suitability checks the UK needs with a view to discussing this with you during Liz Grimsey's visit. The intention is to identify the minimum acceptable checks, especially given that many applicants will already have undergone extensive checks on becoming naturalised as BDTCS. (We noted however your intention of streamlining those checks.) We will provide you with examples of the forms used for checking purposes under the BNA.

17. A full description of the scheme will need to be tabled informally at

at the same time as introducing the Bill. Our intention would be to lay the scheme formally before Parliament immediately following the Bill's enactment. We will consult our legal advisers about the form of the instrument for doing this and advise you accordingly.

18.

We will consider the fee mechanism and order making power. The intention will be to cover costs but there should be sufficient flexibility in case estimates prove inaccurate. You envisaged an application fee (probably £10) and a further charge on receipt of citizenship, the charges to be non-refundable and to be set at a level sufficient to cover the best estimates of the costs (both for HKG and HMG) of administering the scheme. There will be a separate fee for the passport.

19. We will report HKG's concern about the proposal to abolish the Dependent Territories Quota for Hong Kong while retaining it

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