see HKD 34014.

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BY FAX

paj 141

14 January 1993

Foreign & Commonwealth

Office

346

London SW1A 2AH

HKD 340 2 Telephone: 071-

Stephen Day, Esq

BTC

Hong Kong

Dear Steplen,

BNHKA/BRITISH UNDERTAKINGS

RECF

1 5 JAN 1993

JFFICE

INC

1. I would like to fill you in on our recent exchange of telegrams with HKG, copied to you, on "British link points" (resting with Hong Kong telno 57), and to seek your aid in our review of this matter.

2.

(3

92 HKC 340/2 (100) 21

No 10 asked us (see William Chapman's letter of 21 December attached) to consider whether the points scheme under the British Nationality Scheme needs to be amended to give further benefit to employees of British undertakings.

This was prompted by a letter to the Prime Minister from Ian Harris, Managing Director of Bonas Machine Company, about two of his Hong Kong employees who failed to secure British citizenship under the scheme. (The company has been lobbying on this issue since 1989, and has also written to the SofS, DTI and Home Office Ministers and the Asia Pacific Advisory Group). We are in any case, as you may be aware, under a remit from Ministers to review the results of the BNHKA Selection Scheme to see how applications by employees of British firms are faring. The Home Secretary said in 1990 that he would consider, in the light of that review, whether any more need be done for British firms.

3.

Our present judgement, in the light of the information recently provided by HKG, is that employees of British firms are getting (as intended), a more than fair deal as the system now operates. We believe that the disadvantages of giving even more points for British links (which would be controversial in Hong Kong) outweigh the advantages. I am attaching a draft letter arguing the case against increasing the weighting for "British links". I would welcome any thoughts you may have.

in draft

4. The DTI, who have seen this letter (but not the enclosed draft yet), will also be submitting to Ministers. DTI officials expect their Ministers to look particularly carefully at how far the Bonas case illustrates a wider problem which may be affecting British commercial interests in Hong Kong and

bnhka.NAT

YE

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