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(b) above for the same reason. We will so inform Mr Heap.

(d) Our Legal Adviser has pointed out that not all the companies listed are British companies per se: some are subsidiaries of British companies. There is no objection in principle to their inclusion, but the position should be

clarified by the addition of a footnote to the list as

follows:

"Where a holding company qualifies under one of the six

categories, and the Committee is satisfied that the holding

company has effective control of a group of companies, such

companies have also been defined as British".

Mr Heap will be advised accordingly.

6.

As soon as Ministers have approved the list, it will

need to go to the Governor for his consideration. Subject to the Governor's approval, the list would then be ready for publication.

7. It is for consideration, however, whether publication of the list should be held up:

(a) until after Lord Caithness' visit; and

(b)

until the remaining "difficult" companies have been fully considered, so that those determined to be British

can be included in the same list.

The advantages of such a delay would be that press and public interest would be minimised during the Minister's visit to Hong Kong; and the eventual publication of the single list would help to avoid focusing public attention on the relatively controversial marginal companies. On the other hand, it is important that publication of the list is

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