CONFIDENTIAL

Their numbers are dwindling steadily by reason of mortality as well as acceptance as nationals of Sri Lanka or India; they were all born before 1949.

d.Malaysia

On Malayan independence in 1957, the Malayan Government reluctantly agreed to allow persons, mainly of Chinese ethnic origin (the Queen's Chinese), connected with the Settlements of Penang and Malacca, to retain their citizenship of the United Kingdom and Colonies even though they were to acquire citizenship of Malaya and have since become citizens of Malaysia. These now number about 1.3 million. There are also about 120,000 persons of Indian ethnic origin, most of whom are CUKCs, who have not become citizens of Malaysia. The new gener- ation of Malaysian Ministers would inevitably have their attention drawn to the status of these people in United Kingdom law, and this might cause the Malaysian Government to exert pressures on HMG.

6. Overseas British Communites in Foreign Countries The proposals would come as a severe blow to many British com munities in foreign countries who have hitherto been able to transmit their citizenship of the United Kingdom and Colonice to their children by consular birth registration, which would be abolished. Because it would be seen that the nationality tie of their descendants with this country would be broken, it would be criticised as further evidence of lack of support; for British mercantile communities overseas. There are large British communities in South Africa (about 750,000 people), the USA (about 1 million), Latin America (up to 40,000 in Argentina) and some European countries (France about 30,000; Germany about 60,000).

7. Irish Republic

Irish citizens are treated in United Kingdom law for most purposes, including application for United Kingdom citizenship, as if they were British subjects/Commonwealth citizens. Moreover, Irish citizens born before 1 January 1949 are able to make a

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