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basis to be activated some years hence if necessary.

said that the United Kingdom's difficulties were understood

and that they were not asking for automatic right of

entry as they had before 1962.

He

4. I explained the complexities of the Nationality issue. It was very difficult to iron out all the anomalies.

But I fully understood their concerns and undertook to

discuss with you the problems of providing some reassurance

for Hong Kong.

5.

I am in no doubt about the seriousness of the

problem. The Governor has put it starkly. There could be resignations of a number of senior people; weakened

morale in the public service could make government very

difficult. It might thus be increasingly difficult for him

to retain the services, let alone the loyalty, of the

people on whom he most depends and this would affect

confidence. Indeed, I have just received through the

Governor a petition from the locally engaged members of

the Hong Kong Adminstrative Service Association expressing

serious concern about their position.

6.

Hong Kong's concerns are at once psychological and practical. The nationality scheme has, of course, been

with us for some time and since the Green Paper came out

in Hong Kong people have made their misgivings known. They no longer question the Bill as a whole. But with its presentation to Parliament has come a fear that if there was a change of status they would be abandoned to their fate.

One side of the question is their status and that of their

children in United Kingdom and international law if the

Dependent Territory on which their new nationality will be

based were taken over by China. But more worrying is

the lack of a safe haven, particularly for those (unofficials

as well as officials), who have served the British loyally,

often in sensitive positions. Even though the Nationality

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/Bill

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