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criticism in Hong Kong;
(c) the quota for Hong Kong could be phased out
progressively (reducing by 30 places per year), but the St Helena quota should be retained in full, or reduced only slightly, for the first two years and (subject to the review) tail off more steeply thereafter.
11. In these Whitehall discussions we should explain candidly that on present form we expect the St Helena review to conclude that a St Helena scheme must be preserved for some time to come. The Department of Employment are likely to accept our proposal, which would enable them to make a presentationally acceptable announcement now. The Home Office may gib and insist on a faster phasing-out of the Hong Kong quota, but we have some good arguments to deploy, particularly if Ministers confirm that they wish to minimise damage to both Hong Kong and St Helena.
ARPanc
A R Paul
BAGAFJ/5
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