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CONFIDENTIAL

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DEPENDENT TERRITORIES WORK PERMIT QUOTA

1.

HKD 213/1

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261

DESK OFFICER

INDE

PA

FROM AR Paul

Hong Kong Dept

DATE : 4 February 1991

CC

: Mr McLaren Mr Burns Miss Spencer

We spoke last week about the latest developments in our continuing discussions with the Home Office and the Department of Employment about the Dependent Territories Work Permit Quota.

2.

As you know, the Home Office have been pressing for some time for the total abolition of this quota. During the passage of the British Nationality (Hong Kong) Act last year, they took the opportunity to secure Ministerial agreement to the abolition of the Hong Kong part of the quota. However, they then fumbled this opportunity, by failing to press home the advantage; an early announcement of the decision was not made during the passage of the Bill through Parliament, by which time the Department of Employment had already received a very large number of applications for the next year's quota. Accordingly, an announcement was deferred.

3. In the meantime, we have encountered a problem about the terms in which any announcement would be made. This is that there is no credible or defensible reason for abolishing now the Hong Kong part of the quota. The only justification for abolition would be on immigration grounds. But if such a reason is adduced, it would be illogical and inconsistent to abolish the Hong Kong part of the quota and not that part of it reserved for the other Dependent Territories.

4.

Against this background, we and the other Departments are moving towards the conclusion that the only feasible course of action would be to decide now to abolish the whole quota; and to do this by means of a phased approach, over 3 or 4 years. The advantages of this solution are

a)

It would be consistent with the Government's policy on immigration;

6

LOPAEX

CONFIDENTIAL

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