Mr. Martin,

CONFIDENTIAL

Commonwealth Policy & Planning Dept.

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Peers from the Dependent Territories

in a reformed House of Lords

I have the following comments to offer on the memorandum on the above subject enclosed with your circular minute of 10 June.

2. Paragraph 4 (1)

Hong Kong has a population of just under four million people. Some 98% of this total are Chinese in origin and it is estimated that approximately two million are eligible to hold British passports as Hong Kong "belongers". It would therefore be quite wrong to say that the vast majority of the inhabitants of Hong Kong owe allegiance to The Queen. Indeed, even those who are eligible to hold British passports often have strong family and other ties with the Chinese mainland which they inevitably regard as their mother country, even though many of them came to Hong Kong as refugees when China became Communist.

3. Paragraph 5

An important fact to bear in mind, so far as Hong Kong is concerned, is the likely attitude of China towards a development of this nature. Unlike other dependent territories Hong Kong cannot hope for any constitutional development towards self-government and independence. This is because the C.P.G. have made it clear that they regard Hong Kong as part of China to be taken back "at the appropriate time" Meanwhile, they are prepared to let the 'status quo* continue but are quick to take offence at any suggestion (even à reference to Hong Kong as being a

'country" is sufficient) of any change in Hong Kong's constitutional status. The idea that Chinese citizens of Hong Kong should be created British peers and take their seats in the House of Lords would undoubted-

* give to the Chinese Peoples' Government the impression that H.M.G. were trying to bind Hong Kong more closely to themselves against the time when the lease of the New Territories expires in 1997. This would undoubtedly provoke a sharp Chinese reaction and cause even further deterioration in Sino-British relations, probably with unpleasant consequences for Hong Kong.

4. Paragraph 5(iv)

Peers from the dependent territories might not only be vociferous critics of British Government policy towards their territories; they could also (at any rate in the case of Hong Kong) be equally vociferous critics of their own local Governments. This would greatly complicate the task of administra- tion in the territories concerned.

(W. S. Carter)

18 June, 1968

CONFIDENTIAL

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