SECRET
DSR 11C
1
all we can to assure Hong Kong that HMG will be a firm
defender of their interests, and with the objective of a
final arrangement which will protect those interests.
I need not elaborate on the risk to Hong Kong's prosperity
as a financial and commercial centre if confidence were
to crumble.
Confidence in HMG in Hong Kong has been more
badly shaken by the Nationality Act than by anything else.
The Act is regarded as racial, and justifiably we
have been seen to be distancing ourselves from the Hong
Kong people by separating out British Citizens from those
under the umbrella terms CUKC and British subject. The
question of national status in inextricably linked in
the eyes of responsible people in Hong Kong with the
future of the territory. This was made clear once again
with some force by the Hong Kong Councillors when they
met John Belstead on 7 September. They did not expect
the right of abode in Britain but they suspect the
.1
erosion of Britishness' which they see in the separate
status of BDTC. One of their principal interests is
protection in third countries and they want to be able to
write 'British' on immigration forms when travelling. It
is for this purpose that it is entirely appropriate to
include theinternational status of 'British national'
in passports.
In the 4th paragraph of Hyde's letter concern is expressed
that to do so would make it more difficult to apply our
immigration controls if something went wrong in Hong Kong
and people left in large numbers. I am advised that there
is considerablellegal uncertainty as to the extent of any
SECRET
/obligation
Page 90Page 91