**

BACKGROUND

The Future of Hong Kong

1.

See Brief No B2 for China Visit.

Nationality Act 1981

2.

Hong Kong never liked proposals for separate citizenship categories. Would have much preferred no change from unitary

Some changes to suit Hong citizenship of UK and Colonies. Kong were agreed, eg additional category of British Dependent Territories' Citizen (BDTCs); entitlement to registration of BDTC as British Citizen after 5 years' residence in UK.

3.

Hong Kong saw proposals as attempt to distance Hong Kong from UK. Home Office saw Hong Kong's proposals as attempt to frustrate aim of separate citizenship for those

closely connected with the UK itself.

1.

In last stages of Bill in Lords, Hong Kong particularly

anxious to have statement in Act that BUTCs were British

Nationals. IMG opposed because primary purpose of Act (to clarify situation by bringing citizenship categories into line with immigration status and rights of abode) would have been undermined. Gibraltar amendment and Ministerial assurances that discretionary treatment would be given to those Falklanders who do not have the right of abode in UK have added to ill-feeling

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9

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