CONFIDENTIAL
HKD 213
213/1
RECEIVED
1 5 MAY 1991
27
PA
1. I agree with the recommendations. It would be hard on St Helena to deprive it of its quota. And to do so would involve us in an extra and continuing financial commitment (see Annex B).
2. But I think Ministers will wish to consider whether the public line at Annex B is defensible. To announce a phasing out, as suggested there, when our intention is to try to preserve the scheme for St Helena, would be pretty misleading. In some ways it would be better to say at the outset that we intended to exempt St Helena from the phasing out. But that would be likely to create a problem with Hong Kong which would feel discriminated against. We should not add to Hong Kong's current list of problems.
3. I think the best course would be to say in the public announcement that the position will be reviewed in late 1992 to establish whether the phasing out is posing significant difficulty for any dependent territory.
26 April 1991
CC:
Mr Burns
Miss Spencer
Mr Beamish
Mr Paul, HKD
Mr Baker-Bates, SAAD
Mr Gorham, WIAD
John Coles.
JOHN COLES
Miss Brooks, Legal Advisers
Mr Crystal, News Dept
Mr Hobman, LACAD, ODA
Mr Hoole, Governor-
Designate, St Helena (c/o HOMS)
JC1ABM
CONFIDENTIAL