CONFIDENTIAL

DSR 11C

last year gave the FCO view that there was a possibility

that 'lack of agreement on nationality could prevent the Islanders agreeing a solution to the soverignty dispute.

In principle however there seems no reason whyva UK

nationality or immigration provision independent of the

Bill should not form part of any settlement with Argentina

of the dispute over the Falkland Islands if Parliament

agreed'. Thus HMG did not regard the BNA 1981 as necessarily

the last word on the Falkland Islanders' citizenship status,

which tends to counter the implication in the FAC question.

10 It should, however, be noted that the Home Secretary

has shown no sign of being prepared to consider amendment

of the Nationality Act for this or any other purpose.

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CONFIDENTIAL

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