bgrnd.cole.NAT

JEB

CONFIDENTIAL

THIS IS A COPY THE ORIGINAL HAS BEEN CLOSED UNDER

FOI EXEMPTION NO... (1)

SIR JOHN COLE'S MEETING WITH THE GOVERNOR HONG KONG:

29 JULY

Background

Talks with China

1.

(Background in Mr Rickett's submission of 23 July).

HMOCS

2.

(Background in my submission of 26 July).

JLG Issues

3. Extremely slow progress on all fronts. Hong Kong have drafted and we have approved a paper to be handed over in Peking, highlighting the enormous amount of work still to be done in the JLG.

4.

Localisation

5. Overseas contract officers have threatened to challenge HKG's localisation policy on the grounds that it is inconsistent with the Bill of Rights (BOR). Both we and HKG agree that a policy which can result in persons who have lived many years in Hong Kong, losing their jobs is outdated and that if defended in court HKG would probably lose. The HKG do not want the case to go to court as it would draw unwelcome (Chinese) attention to the BOR angle. They decided the least bad option was to amend the policy so that overseas contract officers can switch to local terms if they naturalise at BDTCs and become permanent residents under the current provisions of the Hong Kong Immigration Ordinance. The Chinese, who were briefed on this on 28 July, will almost certainly oppose the decision as will local staff associations.

CONFIDENTIAL

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