CONFIDENTIAL

21. Many people have also expressed concern

nationality. This was without question one of the most

difficult subjects to negotiate. Each side had conflicting

interests that were not easy to reconcile. Nevertheless the

Government believes that the solution eventually achieved goes a long way to meeting the needs of the people of Hong

Kong.

22.

Arrangements on nationality are set out in a draft exchange of memoranda associated with the agreement. The

terms of these memoranda have been agreed between the two

sides and they were initialled at

initialled at the same time as the

agreement itself. The effect of the UK memorandum is that those who were on 30 June 1997 British Dependent Territories citizens by virtue of a connection with Hong Kong will be able to retain, if they wish, a status, which will be a form of British nationality after 1997 and for the rest of their lives. This status can be retained by all such BDTCs

whatever their ethnic origin. It will enable them to continue to use a British passport and to avail themselves of consular protection when in third countries.

CONFIDENTIAL

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