TNAG-2194-FCO40-3131-Hong-Kong-nationality-package-1990 — Page 72

LF MOM

FCS/90/077

HOME SECRETARY

CONFIDENTIAL

1.

Hong Kong: Approved Secondment Scheme

Thank you for your minute of 27 March. I understand the problems which you have identified. But we shall have great

difficulties if we decide to drop the Approved Secondment

Scheme altogether.

2. When the Approved Secondment Scheme was originally

devised, it was clearly envisaged that it would be in addition

to the main scheme. Much of its attraction to British

companies in Hong Kong and to the Hong Kong Government lay

in that fact. OD (K) later decided that the Secondment Scheme

should be within the ceiling of 50,000 families.

3.

As you say in your minute, it would not be technically

difficult to devise a Secondment Scheme outside the Bill, on

the basis of entry clearances rather than full citizenship.

I agree with you, however, that it would cause deep resentment

in Hong Kong if we were to include an entry clearance based

Secondment Scheme within the 50,000, and thereby reduce the

number of passports on offer.

4. I remain convinced, therefore, that the best solution

would be to make provision for a small Secondment Scheme (for

no more than, say, 500 people) outside the Bill and in

addition to the 50,000. We need to take account of the

requirements of British companies based in Hong Kong, who

made it clear to Peter Lloyd during his recent visit that they

remain strongly in favour of retaining the Secondment Scheme.

CONFIDENTIAL

/If