4.
3. In the past few months, the Home Office have been preparing a series of papers on various aspects of a new nationality law, based upon the Green Paper of 1977, with a view to the production of a White Paper in due course. They have recently been instructed by the new Ministers to continue using the Green Paper as their terms of reference. Some of the dependencies, notably Hong Kong, Gibraltar and the Falkland Islands, have reacted strongly to the proposed British overseas citizenship, and not only because it implies second-class status. Each of the three dependencies claims that it should be treated as a special case and alleges that if HM Government adopts this proposal it will undermine confidence in and weaken the United Kingdom's ties with the colony. Other dependencies have also made observations. In each case, it is most important from the Foreign and Commonwealth Office's view to avoid doing anything which places a strain on these relationships. The dependencies' views have been communicated to the Home Office but, apart from acknowledging in their working papers the fact that the dependencies have raised objections, there is no indication so far that the Home Office will change their proposals in any way.
4.
5. It would be unrealistic to expect HM Government to turn back the clock to before 1962 when the first Commonwealth Immigrants Act was passed and permit free entry and right of abode in the United Kingdom. We do not challenge the Home vffice in this respect but the very definition of British overseas citizenship carries with it a stigma of second-class status and we would have hoped that they would respond to the resentments which have been expressed and would propose an alternative formula which might go some way towards assuaging the feelings of hurt pride. This is vital to the Foreign and Commonwealth Office's interests. I have been in contact with all the dependent territory
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