CONFIDENTIAL

0238

(72

Mr Samuel, FED

HKK340/1

CHANGES IN BRITISH NATIONALITY LAWS: POSSIBLE CHINESE INTEREST

$24

1. I am afraid that I shall not, after

be able to attend Mr Murray's meeting with Mr Cradock this afternoon at which it is proposed to seek his views on likely Chinese reactions to changes in the British nationality laws as they might affect Hong Kong, since it clashes with another meeting which I must attend. I have explained this to Mr Murray, who has said that he will therefore look to you to put the problem to Mr Cradock.

2. Background is as follows: The Government intend to intro- duce changes in British nationality laws before +he end of the year. s originally drafted, the Home Office proposals would have created two new categories in place of the present catch- all "Citizen of the United Kingdom and Colonies" (CUKC): "British Citizen" for those with the right of abode in the UK, and "British Overseas Citizen" for all others. The Governor of Hong Kong, reflecting advice from his senior Unofficials, argued strongly agains+ making any change at all. But having now realised +ha+ ilinisters are determined to make the changes, he has argued that there should at least be a separate category for those with the right of abode in a Dependen+ Territory, to distinguish +hem from +hose whose UK citizenship gives them no right of abode anywhere. This additional category should, he believes, be allowed to retain the presen+ +i+le of CUKC, in order that here should be the least possible change for people in Hong Kong.

3.

The Home office have accepted the three tier proposal, but not the retention of the +i+le CUKC for those in the middle category. We want to marshal as many arguments as possible to +ry to persuade +he Home Office to accept the Governor's proposal, and we would like to know therefore if there is a China card to be played. The questions on which we require Mr Cradock's advice are:

(i) Is there likely to be any reaction from China +0 +he

simple fac+ of making any change at all in the +i+le of Hong Kong CUKCs?

(ii) It is very probable that any change will provoke a strong

reaction in Hong Kong, which could lead to uncertainty and loss of confidence: even if the Chinese do not react to the changes as such, is it likely that they would object to our +aking apparently unnecessary measures that will jeopardise stability in Hong Kong?

(iii) Would there be a Chinese reaction to the introduction of

a category of citizenship that included the words Hong Kong (e.g. "British Citizen of Hong Kong")? -in our conversation with Mr Timothy Raison, Minister of State at the Home Office, in June, the Governor said that the introduction of a separate citizenship for Hong Kong would have implications for our relations with China,

CONFIDENTIAL

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