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b)

c)

give an idea of how the scheme will work in practice.

Annex A is a provisional draft setting this out in

general terms. I intend that a less detailed version

of this, pulling together the main features of the

scheme, should be available to Parliament at the time

of introduction of the Bill. That document would need

to be less specific, in particular, about what was proposed for 'the sensitive services' see paragraphs

24 28 below; and

invite colleagues to agree the line which I propose

should be taken in one or two areas of potential

difficulty.

Approved Secondment Scheme

3.

One feature of the Foreign Secretary's announcement on 20

December was a proposed secondment scheme, whereby people could

earn British citizenship by a total of five years' residence, partly in the UK and partly in Hong Kong. The Foreign Secretary and I have since discussed the future of this proposal. Although some of the enthusiasm originally expressed by companies for a scheme of this sort has waned since the announcement, because of the decision to count those granted citizenship in this way against the 50,000 ceiling, some companies remain interested and

Lord Sharp, in particular, has expressed a strong interest on the

part of Cable and Wireless. Dropping the scheme now would no doubt cause disappointment for such firms and their supporters

in Parliament.

4. On the other hand, the Governor

the Governor of Hong Kong is firmly opposed to a secondment scheme included in the 50,000 ceiling and, as the shape of the overall package has emerged more clearly in recent weeks, I have myself developed strong doubts about the

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