CONFIDENTIAL

(b) Threat of Immigration

14.

Some noble Lords have suggested that there might be a

possible flow of immigrants into this country. There are

only an estimted 20,000 British citizens in Hong Kong. They

have the right to enter and live in the UK. The 3 million or so British Dependent Territories citizens in Hong Kong do not

have the right of abode in the UK, nor will they have it

after 1997. Our efforts have been devoted to creating

conditions under which people will wish to stay in Hong Kong

and to build their futures there. We believe that we have

achieved this in the agreement.

(c) Acceptability of Travel Documents

15. According to Section XIV of Annex I to the Joint Declaration, residents of the SAR will be able to use travel documents issued by the SAR Government. They will record the

holder's right to return to the SAR. The Chinese Government

will asist or authorise the SAR Government to conclude visa

abolition agreements with states or regions. Those who are on 30 June 1997 BDTCS by virtue of a connection with Hong Kong will be eligible to retain a status which will enable them to use British passports after that date. These passports will make it clear that the holders have right of abode in the SAR. HMG will do all we can to secure for the

holders of these passports the same access to other countries

as that enjoyed at present by holders of BDTC passports.

There is no reason to believe that third countries will not

recognise these passports.

CONFIDENTIAL

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