CONFIDENTIAL

FROM:

David Lidington

DATE:

1 March 1990

c.c.

Mr Maude

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Mr Gillmore

Mr McLaren

Mr Fraser

34014

Mr Yeo MP

RECEIVED IN DECISTRY

1 1 MAY 1990

Mr Whomersley, Legal

Advisers

DESK OFFICER

REGISTRY

Secretary of State

INDEX

PA

Action Taken

133

M

M

HONG KONG ASSURANCES

1.

I have read Mr Paul's submission of 1 March.

Approved Secondment Scheme

2.

I believe that it would be a serious mistake to ditch this scheme. To do so would infuriate British companies who have been persuaded to support us in public in good measure because of this scheme. Allegations from them of betrayal would not help our cause in Parliament. Dropping the scheme would also sit oddly with our efforts to persuade other countries to take similar measures in respect of Hong Kong people employed by their companies in the territory.

The Approved Secondment Scheme is one way of showing that the assurances package will benefit Britain not just Hong Kong. To dilute the British element as suggested by the Home Secretary risks exposing us to additional criticism in Parliament.

Occupational Groups

3. The purpose of the assurances package is to stem the outflow of key people from Hong Kong. If secretarial and clerical workers show no particular propensity to emigrate then I do not see why we should fear their exclusion from the scheme.

4.

For key entrepreneurs the idea of a small quota set aside for the Governor's special recommendation seems sensible but I would not pick a fight with the Home Office unnecessarily on this question.

David Lidington Special Adviser

CONFIDENTIAL

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