2 CONFIDENTIAL

unitary system of citizenship, its Members should be pleased that we

have persuaded the Home Office to make provision for a separate

category of citizenship for the Dependent Territories as a whole.

The White Paper allows for further discussion of the title of this

category.

6. Expatriate businessmen are concerned about proposal that British

citizenship should not be transmitted beyond first generation born

overseas. White Paper recognises need to make exception

of businessmen who maintain close links with the UK.

in the case

7. The proposed changes in Nationality Law will not affect the present

rights of entry on visits to the UK.

ILLEGAL IMMIGRATION FROM CHINA

8. (See Brief No.10) Although the Executive Council have approved

the Governor's proposals to repatriate all illegal immigrants (Operation

Champion), the Legislative Council have not yet been consulted. They

are expected to support such measures given the continuing high rate

of immigration from China. The Secretary of State should therefore

seek to assure Unofficials that we are very much aware of the serious-

ness of the problem and are actively considering any measures which

will reduce the flow.

LEGAL IMMIGRATION

which is

9. Chinese citizens with valid documents are permitted to enter Hong

Kong and, if they decline to return to China, to remain in Hong Kong.

At the end of 1978 the numbers involved had risen to over 300 a day.

This rate has declined and stabilised at around 150 a day

still treble the normal rate of emigration from Hong Kong.

Chinese Government would oppose any move to impose controls on legal

immigrants.

NEW TERRITORIES LEASES AND THE FUTURE OF HONG KONG

The

10. (See Brief No.11) This is a very sensitive issue and knowledge

of the work done on it is confined in Hong Kong to the Governor and a

CONFIDENTIAL

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