SECRET

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Dependent Territories are excluded from this provision.

Only

Crown Servants employed by the Government of the United Kingdom

are eligible for this criterion for naturalisation as British

citizens as an alternative to the establishment of residence in

the United Kingdom.

6. The Hong Kong Government have pressed for an amendment to the

Schedule which would leave the term 'Crown Servant' sufficiently

undefined so as not to exclude Dependent Territories employees,

although they acknowledge that there would have to be an element

of discretion on the part of the Home Secretary.

7. There are serious political difficulties about meeting Hong

Kong's point. Simply to leave the criterion open would risk a

very large number of people applying for naturalisation. At official

level, we have pointed this out and suggested that another way

might be found to meet the fears of public servants in an exposed

position, perhaps by a confidential assurance.

8. In a telephone call today, the Governor has emphasised the

importance from Hong Kong's point of view of action in the context

of the Bill itself. He understands the political difficulties for

HMG but stresses that feeling among senior officials and Unofficials

is so high that there might be a number of resignations and a

threat to effective government in the Territory.

He strongly urged that

the Secretary of State should speak to the two Unofficials on the

following lines:

a) We realise the importance of the effect of the Bill on

officials and Unofficials.

b) We will try to think of some amendment to the Bill to

provide an assurance on naturalisation or entry.

SECRET

/c)

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