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the future SAR Government along the lines set out in the annex. It will also consider any proposals for the use of the SAR's share of

land income for development projects before 1997.

ASSOCIATED EXCHANGE OF MEMORANDA ON NATIONALITY

1.

Annex one to the Joint Declaration contains provisions on the right of abode in Hong Kong, use of travel documents and control of

immigration to the SAR. Its main features are:

(a) It defines who will have right of abode in

Hong Kong after 1997. Broadly it provides for all those whose permanent homes are in Hong Kong to

have the right to continue to live there.

(b)

It states that the SAR Government will have the

authority to issue its own passports and other travel documents.

(c)

It states that residents of the SAR will also be

able to travel on travel documents issued by the

Chinese authorities and by those of other

countries.

(a)

It confirms that the SAR Government will remain

responsible for control of immigration into the

SAR.

2.

Questions of nationality are covered in two memoranda exchanged

between the Chinese and British Governments at the same time as the

initialling of the Joint Declaration. These memoranda set out each

side's view of the nationality position of Hong Kong people.

3. The British memorandum provides that all people who on 30 June 1997 are British Dependent Territories Citizens (BDTCs) by virtue of a connection with Hong Kong will be eligible to retain

after that date a form of British nationality under a more

appropriate title. This form of nationality will not give them the

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