Mr McLaren
Mr Smedley, NTD
CONFIDENTIAL
HKK 34011
RECEIVED
DEX INDEX
No
REVIEW OF BRITISH NATIONALITY LAW
816
20.1
1. At Mr Smedley's meeting on 23 May, it was agreed that departments should send Mr Smedley a minute setting out the objections from their territories' point of view to HMG's proceeding with the introduction of British Overseas Citizen- ship on the lines set out in the 1977 Green Paper. These comments are for incorporation in a submission which NTD will put to FCO Ministers seeking approval for a consolidated FCO reply to the Home Office, commenting on their draft paper of 12 February on British Overseas Citizenship.
2.
From Hong Kong's point of view, the fundamental objection to the proposal to introduce two categories of British citizen, is the serious risk that the change would have a unsettling effect on confidence in Hong Kong. This risk should not be lightly brushed aside. People in Hong Kong are well aware of the fact that they now consitute the overwhelming majority of those who will come into the new category of British Overseas Citizen. They will therefore automatically assume that the change is being made with Hong Kong in mind and is a deliberate move to diminish the status of Hong Kong British subjects. amount of arguing is ever going to convince them otherwise. And having reached that conclusion, most Hong Kong belongers will see only one possible way of interpreting the change: the beginning of the process of British withdrawal from Hong kong.
No
as
3. If, as is only too possible, this should lead to fall in business confidence and a slump in the Hong Kong economy, British interests could suffer in a number of ways. Hong Kong is, of course, second only to Japan as a market for British goods in Asia (outside the Middle East). Our relationship with China is also partly built on a shared interested in maintaining the stability and prosperity of Hong Kong, and it could create very unwelcome complications in our dealings with Peking if we were to take steps that put the stability of Hong Kong in jeopardy. We could also be faced with immigration problems as well as with an enormous financial burden if Hong Kong ceased to be self-supporting.
4. We have of course already informed the Home Office of Hong Kong's views in sending them our proposed redraft of paragraph 8(b) of their Memorandum (Mr Smedley's letter of 6 April to Mr Lee). But I hope that in sending the Home Office the con- sidered FCO view on their draft, we can emphasise the further point that was also made in passing in the redraft of paragraph 8(b), that we share the Hong Kong Government's fear about the possible effects of introducing British Overseas Citizenship for Hong Kong CUKCs.
CONFIDENTIAL
15.
17