FROM ICI PACIFIC REGION MILLBANK
03,30,1990 12:13
NO, 4
THE "BRITISH PASSPORTS FOR HONG KONG" SCHEME
AN ICT PLC VIEW
BACKGROUND
ICI has been operating in China for 90 years. Since 1956 Hong Kong has represented the focal point for the Group's activities in the Region, Although the ICI Board approved a small joint venture to manufacture paint in Hong Kong and Southern China in 1989 it has been the case and will continue to be so that the vast majority of this trade represents UK produced goods sold to the Region.
CURRENT POSITION
With around 200 staff in Hong Kong, ICI trading activities cover not just Hong Kong itself, but provides the major resource centre for sales to the Mainland. Currently these sales are running in excess of US$220m per annum, nearly all of which is sourced from the United Kingdom.
Uncertainties over the future of Hong Kong have of course led to a higher than average staff turnover growing from around 15% in 1986 to close to 40% in the early part of 1989. Recently this unmanageable level of staff turnover has been reduced but the Group is firmly of the view that without some ability to offer Right of Abode to key employees staff resignations will again increase to unacceptable levels.
PREFERRED OPTIONS
ICI is pleased to learn that current proposals envisage two thirds of the available passports will be allocated to the private sector. Less comforting is the suggestion that the 'Approved Secondment Route' might not be included within the Short Enabling Bill. This would be a great pity as it fits well with our normal career path for fast track employees (in 1989 some 849 staff were working outside their own country in a workforce totalling 133,800 worldwide).
ICI PLC, one of the UK's leading exporters, would therefore wish to register its strong support for the Government's proposals. The provision of Right of Abode to around 50,000 Hong Kong households is an essential safeguard for future British Exports to the Region. ICI much prefers the Approved Secondment Route as such a scheme would be most appropriate. The Group expects some 10-20 key staff members would require Right of Abode status if current and future activities are not to be impaired.
29 March 1990
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