CONFIDENTIAL COVERING SECRET

DSR 11C

18.

A complicating factor is the possibility that an

amendment to the BNA 81 to be moved by Lord Bruce of Donnington

at the end of October may suceed in its aim of conferring

British citizenship on all Falkland Islanders who will not

In

otherwise acquire that status. If the amendment does suceed

we may expect Hong Kong and other dependencies to press for

similar treatment. Their resentment would be all the deeper

if we decline even to designate them 'British nationals'.

the present sensitive circumstances it is important that Hong

Kong should be assured that the FCO is active in pursuance of

the Colony's interests.

19. The FCO's position on the political aspect is inevitably

in conflict with that of the Home Office who are properly

concerned with immigration and nationality aspects. We there-

fore suggest that the Secretary of State should write to the

Home Secretary putting the macro-political viewpoint as in the

attached draft. It may not be possible to agree a position

before the Prime Minister leaves for the Far East on 16

September but she should be aware of the views of the FCO and

the Home Office before she departs. The Secretary of State's

letter and the Home Secretary's reply should therefore be

copied to No 10. There may be the possibility of a decision

before she visits Hong Kong on 26 September.

CONFIDENTIAL COVERING SECRET

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