TNAG-1482-FCO40-2036-Economic-and-commercial-value-of-Hong-Kong-to-the-UK-1986 — Page 64

RECEM IN

- 9 JUN 1986

F. ISTSA LI

Dan Pul Dear

MICHAEL FALLON, M.P.

06 JUN 1986

DEL PSIPH

Inward Investment from Hong Kong

HOUSE OF COMMONS

LONDON SWIA OAA

31st May 1986

The North of England Development Council (NEDC) is the only regional promotion body represented in Hong Kong and, as you know, will be opening a full-time office there from October 1986 thanks to your department's increased funding this year.

NEDC have now prepared the enclosed memorandum on the effect of the immigration rules on current and potential investment by Hong Kong citizens in the United Kingdom. It is the senior managerial and technical staff who have to travel here frequently in order to supervise projects who are most affected by the manner in which these rules are applied.

We understand that in order to enhance their attractiveness for such inward investment other countries such as Canada, Ireland, the United States and most recently Australia have altered their rules in order to facilitate both movement and eventual residence by key personnel. The employment situation in the north-east is serious enough; we should not want to find our region at any disadvantage in competing for much needed job-creating investment.

We should therefore be grateful if your department could take up this matter and make the necessary representations to the Home Office. It may be that what is required is not so much any alteration in the regulations but a more flexible interpretation of them. What is important is that a willingness to adopt a more flexible approach should be make known where appropriate in Hong Kong so that potential investors are encouraged rather than deterred.

ans ever,

Michical

MICHAEL FALLON LLON

Yours.

Bill

LORD ELLIOTT OF MORPETH

The Rt. Hon Paul Channon MP

Secretary of State for Trade and Industry

1-19 Victoria Street

London SW1H OET

TO MR WILLIAMS CHATO

FUR ADVISE (AND MK DELL DRAFT REPLY F PROPRIATE) PLEASE BY:

17/6/86

MR MINGAY (CD) MR PRISTON (1D(3) DINERO

D/NWRO

MK THORNTON Cup/2)

(&P/2)