CONFIDENTIAL

119

27 FEB 1998

POPADX

HKD 340/4

RECEIVED IN REGISTRY

1 APR 1990

DESK OF CEO they

INDEX

PA

Action Taken

Thank you for this advanced warning.

FROM:

DATE:

CC:

A R Paul

Hong Kong Department

27 February 1990

Private Secretary

Mr Gillmore

Mr McLaren

Mr Lidington

Mr Fraser

Mr Yeo, MP

Mr Whomersley, Legal Advisers

PS/MrMaude

1

28/2

HONG KONG ASSURANCES: OD(K) MEETING: 6 MARCH

1.

Please refer to Mr Morris' submission of 23 February,

summarising the outcome of the recent visit by officials to Hong Kong. Home Office officials are now drafting a paper for OD (K)

which they plan to side copy to us in parallel to submitting it to

the Home Secretary on 28 February. But Ministers should know

immediately that the draft paper will contain a number of proposals

on which they will need to make a view.

Secretary's own thinking:

2.

The key proposals are:

(a) Approved Secondment Scheme

These reflect the Home

The Home Secretary wishes to drop this scheme. The Governor is

opposed to the scheme if it is not additional to the 50,000

ceiling. But what has swayed the Home Secretary is his Legal

Advisers view that the scheme may open the door to judicial

review in the UK; and the fact that the scheme would rest on an

extension of the Home Secretary's existing discretionary powers

under the BNA, thereby giving rise to the possibility of

amendments to the BNA. The decision to abandon the scheme would

however be a great disappointment to some British companies in

Hong Kong.

CONFIDENTIAL

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