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12. When Sir S Y Chung raised this he maintained that Hong Kong was
being unfairly treated because the Territory made a number of
concessions in the commercial field to the UK. These should be
acknowledged by the UK not treating Hong Kong as an outsider. It
is true that, very circumspectly, the Governor has been able to
maintain a privileged position for the UK in certain major contracts,
the most recent example was the Castle Peak 'B' Power Station for
which GEC and others were able to negotiate a package without the
deal going to international tender. Another is the continued
stipulation in the Transport Ordinance which stipulates that buses for
the two major bus companies should be supplied from the Commonwealth
(in practice Britain).
13. Some justice in this view, but it does not take account of the
whole political benefit of the UK providing the essential umbrella
for Hong Kong's continued operation as a separate economic entity.
It does, however, underline the increasing sensitivity of Hong Kong
Unofficials on issues (not confined to Students' fees) where they
suspect HMG of weakening the links between the UK and the Territory.
NATIONALITY BILL
14.
On 22 July, House of Lords voted in favour of an amendment to
the Bill which would give Gibraltarians, on account of their EC
connection, the right to become British Citizens. HMG opposed this
amendment on the grounds that the EC relationship should not affect
our Nationality Law and that Gibraltar should not be treated
differently from other Dependent Territories. It is probable that no
decision will be taken by HMG whether to attempt to reverse the
amendment until after the summer recess. The Lord Privy Seal wrote
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