yet ready to finalise their recommendations on these cases, we understand that they are moving towards the conclusion that Hutchisons, Wharf and some other marginal cases should be classified as British on the grounds of their predominantly British management and the volume of their trade with the UK.

On the basis of information received from the Advisory Committee we and FCO officials are satisfied that the companies on the lists demonstrate a close connection with the UK and have no objections to the names. However, having consulted the FCO Legal Adviser we have a number of detailed comments on the way in which eligible companies have been categorised:

(a)

(b)

(c)

(a)

(e)

List G

The Committee have suggested a new category (List G) for institutions which they perceive as British but which, in their view, do not fall conveniently into any of the other categories. The concept of "obviously British" is a subjective one which we are anxious to avoid. After further research it appears that all the institutions can be fitted into the existing categories without the need for a new list. (Appropriate details have now been added to the names on List G.)

List C

The FCO Legal Adviser has advised that the criterion for List C should be expanded slightly to read "... British citizens and companies (or other bodies corporate) registered in the UK." It is clear that the Committee have drawn up the list on this basis, rather than the more restricted criterion of "British citizens". We and FCO officials believe that an amendment along these lines is entirely reasonable and compatible with the intention of the guidelines.

List D

Condition (ii) in list D should be expanded as in (b) above for the same reason.

General

There are a handful of names on lists B, C and D where companies are registered in Jersey or the Isle of Man. We are content that for the purposes of this exercise "UK" should include the UK and the British Islands. The legal advice we have received is that it should be made clear that the "UK" includes Jersey and the Isle of Man.

Not all the companies listed are British companies per se; some are subsidiaries of British companies (eg subsidiaries of large groups like Swires, Inchcape, Jardine etc). While there is no objection in principle

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