1. c. Mr Paus le

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2. Mr Cox Ex Mr Mangli's Wpp. for

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SAS213/1

12.

HKD 2B/1

ECEIV

M S Baker-Bates

South Atlantic & Antarctic Dept

From:

Date:

14 March 1991

Cc:

Mr Burns

)

Miss Spencer

AUS

Mr

Beamish

Mr Gorham WIAD

Mr Paul

Hong Kong Department

DEPENDENT TERRITORIES WORK PERMIT SCHEME

1. Following Mr Hunt's minute to you of 25 February, we have received a detailed explanation from St Helena about why the Islanders attach such importance to the Scheme. We hope that Helena's part in the Work Permit Scheme can be retained and we see two strong reasons for doing so.

2. St Helena is the only British Dependent Territory which still receives Grant-in-Aid. The annual bill of around £10m is money

money which the ODA would prefer to spend elsewhere. Private sector development is so limited that around 75% of the Island's working population of some 3,000 people are employed in the public sector. In absolute terms a reduction by 50 in the number of St Helenians going to work in the UK is of course very small. In St Helena, however, where all must either find work in the public sector or be supported by the state, this would have a considerable effect on the aid bill. We do not wish to see the Island become even more dependent on HMG.

3.

Second, the political implications on st Helena of abolition need consideration. HMG's standing would suffer heavily. St Helenians are extremely loyal to the Crown and were deeply offended by the loss in 1971 of the Right of Abode in the UK, which they regarded as a conscious distancing by HMG from their commitments to the Island. They recognise that there is no possibility in the foreseeable future of that decision being reversed, but hope nonetheless that this will change one day; and they believe strongly that they have a good case for the reinstatement of Right of Abode. Meanwhile, they see the Work Permit Scheme as an the important link with the UK which allows St Helenians to sustain the Island's British outlook, and strengthen the common culture. Many have returned to the Island and given considerable service there.

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