CONFIDENTIAL

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6.

These changes were resented in certain quarters in Hong Kong at

the time and allegations were made that they represented a deliberate

distancing of the United Kingdom from Hong Kong.

However, Hong Kong

has been able to live with the situation where its citizens kept the

symbolic status of CUKC while acknowledging that they did not have

automatic right of entry or abode in the UK. About 2.5 million of

the people in Hong Kong are CUKCS.

7. The new Nationality Bill has, however, fanned the flames set alight

by these earlier pieces of legislation. Senior officials and members

of EXCO and LEGCO in Hong Kong appear to have convinced themselves

that the Nationality Bill will change the relationship between the

UK and Hong Kong and they will become 'Second Class Citizens'.

main problem is a psychological one, heightened by 1997.

The

8. Hong Kong wants the status of CUKC to remain with them in the

form of British Citizenship (Hong Kong). This defeats the purpose

of the Bill and is not attainable.

CONFIDENTIAL

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