TNAG-2367-FCO40-3440-British-Dependent-Territories-(British-Overseas-Territories)-1991 — Page 89

CONFIDENTIAL

Background and Argument

3. The Dependent Territories Work Permit Quota is a

leftover from the 1962 voucher system for Commonwealth

citizens. It allows workers who do not meet the normal work

permit criteria to be issued with work permits. An annual

quota of 600 was established in 1968 but reduced in 1981 to

200. Up to 150 permits are allowed to any one Dependent

Territory. In practice Hong Kong applicants have taken up

this maximum allocation, almost all to work in the Chinese

catering industry. Of the remaining 50 places allocated to

the other Dependent Territories, almost all are taken up by

St Helena.

A

4. The Home Office have been pressing for some time for the

total abolition of the Quota which they see as an anomaly, inconsistent with the Government's general immigration policies. During the passage of the British Nationality (Hong Kong) Act last year, they secured Ministerial agreement to the abolition of the Hong Kong part of the

quota.

5.

However, the Home Office failed to make an early

announcement of the decision. By the time of the Bill's

enactment the Department of Employment had received many applications for the next year's quota. The Department of Employment and we see great difficulty about the terms in

which any announcement would now be made. There is no

credible or defensible reason for abolishing just the Hong

Kong part of the quota. If we used the argument of immigration policy, it would seem illogical and inconsistent

to abolish the Hong Kong part of the quota and not that part

of it reserved for the other Dependent Territories.

BAGAFJ/2

CONFIDENTIAL