anywhere to British subjects. He suggested a compromise for the future whereby holders of British Hong Kong passports would have a passport giving the full protection enjoyed by British

citizens but would have to obtain visas to come to the UK and

work permits if they sought employment. Such a passport would

be limited to the 50 year transition period promised by the

Chinese.

(c) Lord Geddes suggested that BDTC's become BOC's for two

generations after 1997.

(d) Lord Tanlaw suggested that BDTC passports become documents

recognised internationally for visa purposes, not necessarily giving any right of abode. They would then be a form of

permanent exit visa or business travel aid after 1997.

6.

CONFIDENCE

(a) Many Lords expressed confidence about the future of Hong Kong. (b) Lord Tanlaw said now was the time to invest in Hong Kong. (c) Lord Rhodes said that co-operation, not bland British assurances

or unilateral Chinese declarations, was needed for confidence. (d) Lord MacLehose said the people of Hong Kong must not be panicked

by rumour or instant commentators into premature attitudes and

assessments that might prove baseless.

7.

NEGOTIATIONS

Many Lords praised the Government, and the Secretary of State

personally for the conduct of the negotiations.

8. CONSULTATION WITH HONG KONG

Lord Mulley did not think a referendum would be appropriate.

9. PUBLIC SERVICE

Lord Tanlaw asked if localisation was going fast enough.

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