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ght home

(iii)

(iv)

(v)

(vi)

service included as an alternative

to the UK residence requirement; and (3) an additional paragraph 2(f) to

Schedule 1 to ensure the inclusion of

officials and Unofficials (both

serving and retired) and pensioners, while leaving individual applications to be determined within the Home Secretary's discretion.

Our opening position is that we would wish to secure all three elements. There is, however, likely to be strong resistance to element (1) for fear that it would give rise to premature applications, the refusal of which would create problems. We have taken the line in reply to this that an immediate flood of applications is unlikely and that, in any case, we would not be too worried if premature applications are

refused or perhaps deferred.

If resistance remains strong, YE should fall back to asking for elements (2) and (3) only. This would mean that Hong Kong Crown servants seeking naturalisation will have

* to demonstrate an intention to reside in

the UK or enter into UK Crown service.

If even that is not acceptable to HMG, YE should fall back finally to asking for element (3) only but should make this an

absolute sticking point. Unless element (3) is secured the position of Unofficials

would remain in doubt.

YC will no doubt be asked for an assessment

of the likely numbers involved. YE should resist being tied down to specific estimates but should instead point out that the

numbers are within HMG's control. If it

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