A

SECRET

2

inserting the national status 'British' in passports

held by BDTCS connected with Hong Kong. Indeed all

categories of citizen etc in the British Nationality

Act 1981 are 'British nationals' in international law.

This agreement was of particular significance because

it followed earlier controversy with Hong Kong in the

course of which we refused to agree to a proposed status demption

of 'British (Hong Kong) Citizen' which would be difficult

to distinguish from British Citizens, who ipso facto

Shake

ens)

have the right of abode here; and we had subsequently

argued that 'British national' could not be conjoined

with the citizenship of BDTC since the latter was the

only correct status in the field of municipal legisla-

tion. Our lawyers' agreement was in response to the

Hong Kong argument that it was appropriate for passports

to show also the holder's status in international law.

This derives directly from the municipal status, viz

BDTC. Now that the Hong Kong government are aware that

we see no legal objection to the inserting of the status

'British national' they will find it incomprehensible

Mobably

and/sinister if we refuse to do so, and will quite

and

reasonably expect an explanation. I notice that Ilyde's

addl

letter does not ress this important aspect of the

problem.

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our vorumitinat.

that

The second foreign policy difficulty is/with the Prime

Minister's, visits to Peking and Hong Kong this month

may

we

enter

entering an extended period of negotiation about Terimy's the ons future in relation to the expiry of the

New Territories lease in 1997. It is most important

to do all we can to assure Hong Kong that HMG will be

a firm defender of their interests throughout this-

SECRET

/period-

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