CODE 18-77

HKD 340

16 JUL 1991

RECEIVER NREGIST

HC

DESK OFFICER

INDEX

PA

COMMERCIAL IN CONFIDENCE

Yes.

Mn Dors

Reference...

INT SUPT

Sur (43)

CC: N Carter Esq, SED, FC

Hong Kong Dept, FCO

Another " "Charry picky"" proposal This time Malta. The final sentence

rings true,

I thank

DESIGN GROUP PARTNERSHIP INTERNATIONAL:

IMMIGRANTS PROJECT: MALTA

HONG KONG

Jh Hr

25/6

Mr Robert Markham, Chairman, and Mr John Duncan, Director of DGP International called on me on Friday 14 June. Mr Bianco

Apparently, Mr Carter in SED had given them my

1.

was

present.

name.

2 =

Mr Markham said that an un-named local intermediary (to judge from what subsequently transpired, seemingly a senior Malta Labour Party supporter) had put to them and their bankers, Hill Samuel, a project to bring to Malta some 2500-3000 Hong Kong-belongers who would set up in business here. The core would be approximately 1000 businessmen and entrepreneurs, the remainder their dependents. The idea was to set them up as a self-contained commune on land which was available for purchase in the south of the island.

3.

In view of Local time pressures (not least the forthcoming elections), the aim was to have the project up and running within

bout nine months from now. This timescale created additional pressures from the Hong Kong angle, since apparently no firm arrangements had yet been made there. Since DGP understood that no single local enterprise was currently capable of taking on such a project, the idea would be to try to draw together a consortium of companies. Regardless of this, however, there would be a need to bring in considerable outside assistance. Mr Markham further explained that their intermediary had sought to assure them that all the necessary political clearances, particularly that of the opposition Malta Labour Party, were forthcoming. Later that afternoon they were scheduled to see the Economics Minister, Mr John Dalli, who was apparently the motivating force on the Maltese government side. Mr Markham asked what I thought of the project's prospects.

4. I said I forsaw a number of potential pitfalls. The most significant of these was

was the need to get specific and clear cut guarantees from the Malta Labour Party that they were content with the proposal. There were elements, not least the proposed location of the commune in an MLP-stronghold area of the island, and the intention to bring in foreign workers to build the commune, which would put domestic political pressure on both the MLP and the General Workers' Union. There would also be the thorny question, again of direct interest to the MLP/GWU, of the extent to which the introduction of so many foreign businessmen might have a negative rather than a positive impact on Local job spects. Finally, I thought the proposed method was not the most propitious way of seeking to integrate what was by local standards a very large number (representing

/almost.

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