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beneficiaries after registration, although it may prove possible

to disband the team and process these stragglers by diplomatic

The team will however have to be in place, in reduced form,

for the second tranche in about 1994/5 when the remaining 7,000

places will be allocated to heads of households.

bag.

The Cost of the UK Team

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25.

Annex C gives the average cost to FCO of keeping a DS5, DS7

and DS9 stationed in Hong Kong. These grades are equivalent in

seniority to Grade 7, HEO and EO respectively. The figures

reflect 1989/90 forecast costs. Some of the items of expenditure

shown - namely "office services", "office rent and utilities" and "local support" will not be incurred in this case, because it is expected that they will be provided by the Hong Kong

Government free of charge.

26. The clerical staff needed, as well as secretarial support,

will also be provided by the Hong Kong Government free of charge.

27. On this basis Annex D shows that the estimated annual cost

of the UK team at forecast 1989/90 costs will be approximately

£800,000. This will apply during the first two years of the PES

period; in the third year, namely 1993/4, we would expect expenditure to be substantially reduced as the team is wound

down.

Implications for Departmental Running Costs

28. [Discussions are proceeding between the Home Office and the

FCO about which Department's vote should bear the cost of the UK

team in Hong Kong. If it is decided that they should fall to the Home Office they would be charged to the budget of the

Immigration and Nationality Department.

In that case it would

not be possible to absorb the additional expenditure within the

existing base line and additional provision would have to be

sought in this year's PES.]

Reimbursement of Expenditure

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