CONFIDENTIAL

These are matters which will feature in the discussions which the joint

Home Office/FCO Bill team will be holding with the Hong Kong Government

during their current visit to Hong Kong (10-16 February).

Numbers

4.

The Hong Kong Government argue (with justification) that the 50,000 ceiling is too tight to accommodate all the deserving public sector

people they want to cover, while retaining a respectable ratio in

favour of the private sector. But the Home Secretary is adamant that

the solutions they have proposed to deal with this (which involve

breaching or adding to the 50,000 control figure) are not on. We

cannot reasonably press Mr Waddington to change his mind.

The only

alternative, therefore, may be to adjust the ratio of assurances in

favour of the private sector. The Bill team will report the outcome on

their return from Hong Kong.

The Approved Secondment Scheme

7.

Our latest information is that companies are still keen on the

approved secondments scheme. Officials will also be taking further

soundings during their current visit to Hong Kong.

Eligibility

8. Definition of eligibility to apply under the citizenship scheme is

another subject which will require further discussion with the Hong

Kong Government. Officials will report to Ministers on their return

from Hong Kong.

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CONFIDENTIAL

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