NATIONALITY

CONFIDENTIAL

1. The question hs been raised of the national status after 1997

of those who now hold British Dependent Territories citizenship by virtue of a connection with Hong Kong. The issue of nationality is

one which I can assure Honourable members we have been considering

most carefully. All I can say now is that HMG are fully aware of the importance that many British Dependent Territories citizens in

Hong Kong attach to the retention of British nationality in 1997.

We recognise that this would help considerably in the maintenance of

confidence in the territory. We also understand the need to

preserve the freedom of travel so important to the trade links which

are the basis of Hong Kong's prosperity.

REGISTRATION UNDER THE BRITISH NATIONALITY ACT

G

DEFENSIVE

2. I must stress the importance of securing an agreement which will encourage Hong Kong people to continue living and working in

Hong Kong. Under the British Nationality Act 1981 BDTCs who have

been resident in the UK for 5 years have an entitlement to registration as British citizens.

Someone who has been in Crown

service under the Government of a dpendent territory (eg Hong Kong)

may be registered at the Home Secretary's discretion without

residence in the UK, paying regard to the special circumstances of

the individual case.

[If pressed on criteria for exercise of discretion.]

Applications will be considered on their merits but it has always been the intention to use this provision very sparingly.

TRAVEL DOCUMENTS

3. The Honourable Member referred to the need for the present holders of British Dependent Territories Citizens passports to retain after 1997 a form of travel document which would give them

freedom of travel. We acknowledge and understand the need, both

from the point of view of the individuals concerned and and from the

point of view of Hong Kong's requirements as an international

CONFIDENTIAL

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