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CONFIDENTIAL

HKD 213/1

PEGISTAY 1 MAY 1991

OFFICER

THETRY

23

масок

ли

Mr Morgin 12.29/4

27/4

From: A R Paul

PA

dur laken

Hong Kong Department

Date: 26 April 1991

Sir J Coles

cc: Mr Burns

Mr Baker-Bates, SAAD

DEPENDENT TERRITORIES WORK PERMIT SCHEME

1.

attached.

Thank you for your minute of 25 April. To take your para 2 first, if from the outset we publicly exempt St Helena, Hong Kong will once again feel itself the victim of discrimination. The vigilant Hong Kong media would play up the theme of a new "anti-Hong Kong" measure, particularly

in current circumstances. We may see the Hong Kong Quota as small beer; they will see its suppression as the latest manifestation of a mean bureaucratic spirit underlying our policy. The arguments in favour of little St Helena, which seem fair and sensible from London, would carry no weight

in Hong Kong.

2.

I agree (your para 1) that there can be no question of misleading Parliament. In response to an arranged PQ, Ministers need not say that they had decided on "a phase-out for all dependent territories" but that they were phasing out the present Dependent Territories' Work Permit Scheme. If they felt nervous about leaving it at that they could perhaps add that the position would be reviewed at the end of next year to consider whether the phase-out was posing significant difficulties for any dependent territory.

3. Alternatively, Ministers could tell the Home Secretary

that they had had second thoughts about Mr Waddington's

MAXAJD/1

CONFIDENTIAL

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