Tootal Group
Alan Paul, Esq.
Head of Hong Kong Department
FCO
Downing Street
LONDON
SW1A 2AL
Dear Mr. Paul,
MOD 340
RECEIVER
SISTRY
23 JAN 1990
OFSK OFFICER
INDEX
PA
28 November 1989
REGISTRY
Action Taken
Tepiz
pc
I have recently returned from a visit to Hong Kong and China and I am particularly concerned about the effect of the current uncertainty
uncertainty there.
forthcoming review of the right of abode for Hong Kong citizens is an issue which has considerable importance to us in Tootal.
lead the
The core of our strategy is to develop our internatioral network of operations and the Far East represents an area of high growth for us particularly in China where we way with our two joint
joint ventures
ventures with the PRC. The total turnover of companies dependent on supplies out of China is around £75 million this year and earns approximately 10% in pre-tax profit.
The continued success of our investment and interests in China depends very largely on our key managers in Hong Kong. We have an effective and enthusiastic team of Hong Kong Chinese which has taken many years to build. Ilowever, in the current uncertainty surrounding British Government Policy all the senior managers are preparing to emigrate to obtain citizenship of Canada and Australia. They are taking this course of action as an insurance for the future, not because they wish to leave Hong Kong.
In consequence, should they be offered right of abode in the UK, it is not their intention to exercise that right. From Tootal's point of view their unique value lies in Hong Kong and the PRC, so posting to the UK would serve no purpose.
We understand that the Government will shortly make proposals designed to alleviate the fears of Hong Kong residents and offer right of abode to a limited number of individuals.
Registered in England No 53353