2.

5.

Although the implications of the expiry of this lease have been known for many years, it has not yet been a matter of public debate. But the publication of the Green Paper has already forced Hong Kong residents to ask themselves what their position will be when the lease expires and what the obligations of the British Government to them will be at that time. The impact will be all the greater if the proposals in the Green Paper become law without any special provision for Hong Kong residents.

6.

Approximately 2.6 million Hong Kong residents are Most of these Citizens of the United Kingdom and Colonies. regard themselves as Hong Kong belongers, as indeed they are, and they expect the continued protection thus entailed. Any new Nationality Act will therefore make it necessary for the British Government to clarify its obligations particularly to those residents of Hong Kong who are Citizens of the United Kingdon and Colonies.

7.

The fact that public reaction in Hong Kong to the Green Paper has been muted, should not be taken as an indication that it has not aroused public concern; rather it' is a reflection of the understanding by Hong Kong residents that any public debate on this topic could of itself affect local confidence and should therefore be avoided.

8.

If a timely reassurance is not forthcoming, internal, and subsequently external confidence in the future of Hong Kong must weaken. This will have repercussions on the continued social progress, economic development and internal stability of Hong Kong.

UMELCO Office

31.5.77

#23

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