A

Dependent Territories have had no automatic right of entry to the United Kingdom. Most of the Dependent Territories accept that there is no realistic prospect of restoring the pre-1962 position. Rights of access are therefore not at issue except in the cases of Gibraltar and the Falkland Islands.

The proposed change is mainly one of nomenclature. The difficulties outlined in paragraph 5 above would, however, be greatly eased (without any consequences for immigration control in the United Kingdom) if the existing CUKC's were divided into three categories instead of two:-

(i)

(ii)

those with the right of abode in the United Kingdom;

those with the right of abode in a Dependent Territory;

(iii) British Overseas Citizens (the remainder).

The retention of the title "Citizens of the United Kingdom and Colonies" for those in the second category would be particularly helpful in Hong Kong, where a change of nomenclature would be interpreted as aimed at Hong Kong (because the great majority of British passport holders overseas live there) and intended to distance the United Kingdom from its commitments to Hong Kong.

8.

This proposal for a three-tier citizenship was put to Mur Raison, Minister of State at the Home Office, by the Governor of Hong Kong during his recent visit. It is dismissed without explanation in the third paragraph of Mr Butler's letter of 5 July. It is a matter of deep concern for our largest overseas territory 5 million people at a time when we are trying to develop the political aspects of the relationship with China to ensure more confidence in the Colony; yet there is no evidence that the Home Office have given it serious consideration. It should, however, be made clear that this solution

CONFIDENTIAL

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