TNAG-2379-FCO40-3458-Hong-Kong-nationality-British-Nationality-(Hong-Kong)-Act-19-1991 — Page 10

CONFIDENTIAL

065753

MDHIAN 4725

AND THAT THEY CERTAINLY REPRESENTED A MAJOR BRITISH COMMERCIAL INTEREST THAT DESERVED PROTECTION, AND (B) THAT IN THE CASE OF THE OTHER UTILITIES, NAMELY THE TWO ELECTRICITY COMPANIES AND TOWN GAS, WE HAD ACCEPTED THEIR VERY LARGE PURCHASES OF CAPITAL EQUIPMENT FROM THE UK AS A QUALIFYING FACTOR, EVEN ALTHOUGH THEY EQUALLY ARE NOT PRIMARILY TRADING ENTITIES. THE COMMITTEE ALSO NOTED THAT THEY HAD NOT ACCEPTED MTR EARLIER BECAUSE THEY HAD THOUGHT THERE WOULD

BE A HOSTILE PUBLIC REACTION WHEN PUBLISHED ON ACCOUNT OF THEIR NOT

BEING PERCEIVED AS BRITISH. HOWEVER THERE HAD BEEN VERY LITTLE

PUBLIC REACTION TO THE LIST AT ALL, AND SO IT WAS CONSIDERED THIS NEED NOT BE A FACTOR. ALSO IT HAD EARLIER BEEN FEARED THAT TO ADMIT

THESE VERY LARGE EMPLOYERS TO THE LIST WOULD BE TO RISK BEING SWAMPED BY CLAIMANTS FOR THE EXTRA POINTS TO THE DETRIMENT OF MORE

TIGHTLY DEFINED BRITISH FIRMS: NOT IT WAS APPARENT THAT THE

NUMBERS APPLYING WERE SMALL THIS FEAR COULD ALSO BE DISCOUNTED.

5. THE OTHER RAILWAY COMPANY, KCR, WERE NOT CONSIDERED BY THE COMMITTEE BECAUSE THEY HAD NOT MADE A NEW APPROACH, BUT IT WILL BE HARD NOT TO BRACKET THEM TOGETHER WITH MTR AND CERTAINLY ANY

DISTINCTION WE MAKE IS NOT LIKELY TO BE UNDERSTOOD. KCR'S CLAIM IS

NOT AS STRONG AS MTR'S SINCE THEY HAVE A SIGNIFICANTLY SMALLER

PERCENTAGE OF BRITISH DIRECTORS AND SENIOR MANAGERS. HOWEVER THEY

ARE BOUND TO SEEK RECONSIDERATION ONCE THEY HEAR OF A FAVOURABLE DECISION ON MTR (IF THAT RECOMMENDATION IS ENDORSED BY MINISTERS AND THE GOVERNOR) SO THEY WILL BE LIKELY TO BE RECONSIDERED AT THE

COMMITTEE'S NEXT MEETING.

6.

IT MIGHT BE HELPFUL TO APPLICANTS IF THE HKG CAN PUBLISH A FURTHER SUPPLEMENTARY LIST OF APPROVED UNDERTAKINGS BEFORE THE 28 FEBRUARY DEADLINE. I HOPE THEREFORE THAT IT MIGHT BE POSSIBLE FOR

YOURSELVES AND THE DTI TO CONSIDER THESE LATEST NAMES QUICKLY.

7.

SINCE PUBLICATION OF THE LIST OF APPROVED BRITISH UNDERTAKINGS WE HAVE HAD LITTLE PRIVATE AND NO PUBLIC CRITICISM OF THE LIST, BUT WE ARE GETTING MANY APPROACHES FROM NEW COMPANIES ASKING TO BE INCLUDED, WHICH WE ARE PROCESSING AS QUICKLY AS POSSIBLE. THIS IN ADDITION TO THE NAMES NOW BEING SENT TO US BY THE IMMIGRATION DEPARTMENT, TAKEN FROM APPLICATION FORMS. OUR LIST OF NAMES APPROVED AT THE COMMITTEE MEETING OF 20 FEBRUARY INCLUDES A RESIDUE FROM OUR PREVIOUS CONSIDERATIONS, NAMES FROM THE IMMIGRATION DEPARTMENT, AND NAMES, LIKE MTR, THAT WERE RECONSIDERED BECAUSE OF NEW APPROACHES AND POSSIBLE NEW EVIDENCE. THE IMMIGRATION DEPARTMENT ALSO HAD REFERRED TO US A VERY SLIGHT VARIANTS (PRESUMABLY AS PICKED UP BY THE COMPUTER)

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ON NAMES ALREADY APPROVED