TNAG-2192-FCO40-3129-Hong-Kong-nationality-package-1990 — Page 20

CONFIDENTIA

2.

Governor. Under a secondment scheme, I would be responsible for

approving the firms which could participate, and allocating the

available places between them, and the scheme would be seen as

an HMG, rather than an HKG, scheme. I would much prefer to avoid

that.

consideration

is that my

involvement

A third

in the

selection process for the secondment scheme would widen the scope

for judicial review in the courts here.

Finally, and this is more a point for you, it seems very

likely that the removal of over 80% of the Hong Kong working

population from the main scheme will increase the Governor's

hostility towards the secondment scheme. He will be able to

claim, with justification, that the restructuring of his original

proposals will result in more than 60% of the assurances under

the General Allocation Scheme going to the business community.

Within that scheme, employees of British firms will in any case

have a modest advantage over the points system on the basis of

their British links: and he may argue that a further advantage

through a secondment scheme would be difficult to defend in Hong

Kong.

I recognise that we shall face criticism from British firms

if we abandon the scheme, particularly since it featured in your

announcement of 20 December, but I think we can point to the way

in which the General Allocation Scheme will favour employees of

British companies to counter that criticism. I hope that, on

balance, you will feel able to agree with my firm view that the

scheme should be abandoned.

CONFIDENTIAL !