NOTE FOR FILE

CONFIDENTIAL

2

RECE

HKD 213/1

Dr INDICA

GISTO

1 4 JUN 1991

PA

31)

DEPENDANT TERRITORIES WORK PERMIT QUOTA (DTWPQ)

1.

I telephoned the Department of Employment about Mr Paul's letter of 14 May to Russell Yates, Home Office proposing a five year phase-out of the DTWPQ with a review after 2 years. I found that Bob Niblett had been replaced by Simon Norton, who has just arrived and is finding his feet. (idiom!)

2. He was aware of the subject but had yet to submit on it. His present feeling was that his Ministers would find a 3 year phase-out more palatable than a 5 year one, because:

(a) They were very sensitive about the 2 million (and rising) unemployment rate;

(b) This problem would be exacerbated in 1992 with an expected influx of immigrant labour from Spain and Portugal.

For these reasons Department of Employment Ministers would prefer the quota to end as quickly as possible.

3.

I argued strongly on standard lines for a 5 year phase-out. He took the various points and said that he would be responding "in the next couple of weeks".

4. I took the opportunity of a telephone call on another matter to ask Russell Yates if he had received Mr Paul's letter. He said that John Gilbert was taking it forward and would be discussing it with the Department of Employment. Mr Yates said he thought the Home Office would be "trying to tighten you (ie HKD) up on the detail" but the most important thing from their point of view was to see the back of the scheme, so he thought that the broad principle of a phase-out was likely to be approved.

28 May 1991

CC: Mr Paul

se: der Innes, SHAD

Jharia

J

Morris

4/6

The Holland, WIAD

CONFIDENTIAL

DAWAIF

Thanks. Perhaps work copying to WIAD + SAAB, to keep them in the picture? Mr yox

1/31/5

M

3/15

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