TNAG-2192-FCO40-3129-Hong-Kong-nationality-package-1990 — Page 206

CONFIDENTIAL

154

[THE

X

OTHER RISK IS THAT BUSINESS

HONG KONG BILL: CHECK LIST OF ACTION POINTS/POINTS OF INFORMATION ARISING FROM MEETING WITH HOME OFFICE OFFICIALS, 7 MARCH

Approved Secondments Scheme (ASS)

RECEIVED IN REGIST

1 1 MAY 1990

(1990

DESK OFFICER TRECHTHY INDEX

Ken

1. Mr Hammond argued that the ASS would be large exercise of discretion by the Home Secretary. This would need to appear on the

face of the Bill. Unlike the ordinary scheme where Home Secretary

will rely on Governor's recommendations the ASS will involve

decisions on Home Secretary's part. The two different sources of authority for decisions under the package will create tensions which will complicate the handling of the Bill.

2. It was agreed that the retention of the ASS was essentially a

political decision. Ministers would need to balance the legal

and presentational complications and the opposition of the Governor

to the scheme against the fact that

(see BTC

HK tee]

(i) the Secretary of State announced it on 20 December; (ii) the business community is still attracted to the scheme and

Lord Sharp has gone public on this(and defended it to Li Pens);

(iii) it provides business with a guarantee of places which no other part of the package can; Compences mu react badly when they

Malize this (iv) is the one part of the package which can be sold as directly benefitting the UK (British companies will be involved and Hong Kong companies will be encouraged to invest in the UK)

3.

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it wa

bing prom sting inward investment from HK in the Uk of frote

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Home Office side conceded that it may be necessary to drop the

scheme but hold it in reserve for reintroduction at a later stage in the Bill's passage if business lobby pressure made this

necessary. This would be untidy and embarrassing.

LOBBY WILL PRED FOR BRITISH COMMERCIAL BINS TO BE BUILT INTO PALS RUINDF

SCHEME]

X

L

Action Both sets of officials will submit to their Secretaries of State giving arguments pro and con and recommending they discuss this in the margins of Cabinet on 8 March.

The present position

-

is that it

is the Governor who mu recommad

CONFIDENTIAL

PUPABN parharpating ракаранау companies and organisations; ho

HIG odminister the scheme

linko

an

Anglo HKC Commerce

generous, - Fco objective.