CONFIDENTIAL

Nevertheless

DSR 11C

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second Hong Kong Bill.

Unfortunately the overriding

consideration is to secure the enactment before

30 June 1985 of those parts of the Bill without which the

UK could not ratify the Joint Declaration, i.e. clauses

dealing with sovereignty and privileges and immunities

which will give effect to the undertakings given to the

Chinese in the Joint Declaration. If therefore the

provisions on nationality or modification of laws ran into

undue parliamentary difficulties they could both in the

last resort be dropped from the Bill.

Nationality

The object of the nationality provisions in the Bill

will be to take advantage of China's tacit acceptance of the

UK Memorandum (page 28 of paper A). They should relate to

all persons who on 30 June 1997 are, by virtue of a

>

connection with Hong Kong British Dependent Territories

citizens under the British Nationality Act 1981. The Bill

should deprive them of that status with effect from

1 July 1997, and prevent any person from acquiring it

thereafter by virtue of a connection with Hong Kong.

8.

A new category of British nationality will in due

course have to be created. Persons who on 30 June 1997 were

BDTC's by virtue of a connection with Hong Kong will be

eligible to acquire this new status, but will not be

obliged to do so. The means by which they will be able to

express their choice has yet to be decided. Decisions on

this and other modalities cannot be taken before 30 June 1985.

CONFIDENTIAL

/The

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