TNAG-2192-FCO40-3129-Hong-Kong-nationality-package-1990 — Page 5

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B:

APPROVED SECONDMENT SCHEME (ASS)

Understand Home Secretary's wish not to complicate Bill. But

believe balance of advantage lies in retaining this Scheme.

A number of leading British companies (Cable and Wireless, ICI,

BP, Glaxo) keen to make use of Scheme. Would be most disappointed

if we went back on what I announced on 20 December. Others have

stressed urgent need for help in retaining key personnel (Barclays,

TSB, Tootal, United Biscuits, GEC etc). Unwise to alienate these

companies when we need their support to persuade waverers of merits

of package.

Some EC countries (eg France, Belgium) have already introduced

measures specifically to help their companies in Hong Kong. Others

may well follow. Secondment Scheme is the only part of our package tailored for UK companies in Hong Kong.

Could reduce, if not eliminate, risk of judicial review in UK by

basing ASS on Governor's recommendations (as with rest of package).

Should be possible to devise objective criteria for eligible

companies (eg turnover, number of employees etc).

ASS would also be useful vehicle to enable British Council staff

to qualify.

C: OCCUPATIONAL GROUPS

-

Support Home Secretary's proposal to focus on demonstrably key

groups. Scheme would still cover "people from wide range of walks of life" (my Statement of 20 December).

- [However, exclusion of majority of working population will make

scheme much more difficult to present in Hong Kong.If package appears too narrow, criticism in Hong Kong could play back in parliament. We should not cut down categories any further.

KIPACP (2)

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