TNAG-2367-FCO40-3440-British-Dependent-Territories-(British-Overseas-Territories)-1991 — Page 98

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CONFIDENTIAL

Background and Argument

3. The Dependent Territories Work Permit Quota allows

annually up to 200 workers who do not meet the normal work permit criteria to be issued with work permits.

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.

4. The Home Office have been pressing for some time for the total abolition of this quota. 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 a large

number of applications for the next year's quota. We and

the Department of Employment see great difficulty about the

terms in which any announcement would now be made. There is

no credible or defensible reason for abolishing now the Hong Kong part of the quota. The only justification would be on immigration grounds. But if such a reason is adduced, it would be 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