TNAG-2644-FCO40-3837-Emigration-from-Hong-Kong-overseas-rights-to-abode-and-passp-1992 — Page 4

3. Mr Tampi said there had been reaction to the decisions.

hence this visit to the UK. There had been evidence of corrupt

practice. Swissborough's licence had been granted in the

knowledge that the concession area was part of the Highlands

Water Project. Expert opinion was that there was no chance of

finding diamonds in the area and the licence was solely to

obtain subsequent compensation. GOL had made a political

decision to cancel the licence. The decision had been

challenged in the courts. The final ruling, expected in February, was likely to be for the Government.

4. Mr Tsekoa said that the Lesotho Honorary Consul in

Hong Kong (now sacked) was directly involved in the sale of passports (nationality) to mainland Chinese. The issue of the

passports did not meet the requirements of law so the grant of citizenship had been cancelled. The recipients should have

been credible business people but were not. The High Commissioner did not want the wrong message to go out from this

that investors who legally obtained Lesotho nationality on

business grounds would lose it once the investment is made.

GOL were grateful for the assistance given by the Hong Kong

authorities to GOL's commission of enquiry. Mr Christopher

thanked GOL for the early notification of the details of the

passports involved. We had been able to warn our authorities.

5. Mr Christopher asked when a change in the rules of land ownership would be made. The present system was a disincentive to investment. Mr Tampi said that there was a "serious chance

of change". He said there were fears that communal land would

be lost but this question is being pursued. The World Bank was

also exerting pressure for change. He said that the idea of relaxation of land ownership rules will need to be sold to

people.

ald7.COL