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3. The issue is however politically and psychologically ve

important in terms of UK/Hong Kong relations and of our

responsibility for the welfare and protection of the

interests of the Hong Kong people. It has become caught up

with the whole question of Hong Kong's future and has a

continuing influence on confidence in the Territory.

There is no doubt.

As we move into negotiations with the Chinese, following the

is bound to increase leading to Prime Minister's visit, uncertainty will grow as will demands

for reassurance about the genuineness of our commitment to

Hong Kong and the interests of her people.

that a gesture such as describing them in their passports as

'British nationals' would help to allay anxieties and boost

confidence. On the other hand, to reject their request would

cause grave disappointment to them, indeed more so now that

their hopes have been raised somewhat by the Prime Minister's

remark in Hong Kong that she would take up thepoint on her

return and hoped that we would be able to have 'some

encouraging news' for them. This disappointment would also

certainly be aggravated when it becomes known that HMG do

not intend to oppose Lord Bruce of Donington's bill for

British citizenship for those Falkland Islanders who do not

at present qualify for it.

4.

There does not appear to be any dispute that the

holders of all three new citizenships created by the BNA 1981

are British nationals in the sense that the UK Government

are entitled to accord them consular protection when they

travel abroad on passports issued to them. There can

therefore be no legal objection to the inclusion in Hong Kong

passports of the additional description 'British national'.

This view, is, I believe, shared by the Home Office and FCO

CONFIDENTIAL

/Legal

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