SECRET

8

Action

30.

As HMG cannot make a loss in operating this

Scheme and the costs to be incurred by the UK side will

be relatively small, it is agreed that a direct

reimbursement of costs to HMG will be administratively

simpler and tidier. Both sides will clear this

arrangement with their respective Treasury authorities.

Monitoring Procedures

31.

As it would be politically sensitive to gather

information on the movements of individual

beneficiaries, HMG and HKG agree that statistical aggregates on departure figures of beneficiaries who

have left Hong Kong for over six months will be

provided. Such figures will overstate the numbers of

Hong Kong families which may have settled in the UK and

must be used with care.

HMG &

HKG

Legislative Drafting Instructions and Timetable

32.

HMG will consult HKG on the bill before its

introduction. The bill is likely to be tabled about

one week before Easter and debated in Parliament around

the third week of April. Committee stage will probably take place in May and the bill will be presented to the

House of Lords in late June or July. The Governor and

the Chief Secretary have agreed to send a small HK team

to UK to assist in the processing of the Bill should the

need arise.

HMG

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