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situation is more likely to arise if we envisage such an Order in

Council, than if we go for legislation to effect a transfer now.

4.

On the nationality point we have consulted further with Home

Office officials. We understand that the Home Secretary remains

adamantly opposed to a separate Act to amend the BNA, on the not

unreasonable grounds that this would allow a whole host of

amendments to be put forward which were nothing to do with

Hong Kong. Nor would a separate Hong Kong (consequential

legislation) bill be very attractive, since there would be very

little to go into it. Most of the changes to UK legislation could

not be made until we approached 1997. A strong consideration in

favour of the Home Secretary's wish to make provision now is the

probability that we shall need the legislation before 1987 in order

to continue to issue passports with the normal 10 years validity.

understand that the Home Secretary is likely to be content with an

enabling clause, and will not press for legislation to deal

I

definitively with the nationality point in this Bill. But wire noucen? holes?

5. If we agree to adopt the approach favoured by the Home

Secretary, there will not be much that is controversial about this

paper. It might therefore conceivably be possible to put the paper

directly to the QL Committee, perhaps sending copies for information

only to OD (K). However the Secretary of State may well feel that in

view of the importance of the legislation and its rather unusual

nature it should be put first to OD(K). This might perhaps be done

out of committee, since a meeting will not be possible until after

22 October. It might also be possible to clear it subsequently out

of Committee with QL. We should aim to send instructions to

Parliamentary Counsel as soon as possible. These instructions are

being prepared in the meantime on a contingency basis, and provided

that agreement is reached before the end of October we think that

this should be sufficient.

6. Whichever way we proceed the Home Secretary has asked if we

could clear the paper with the Home Office before circulating it.

If the Secretary of State is content with the general line we shall

try to do this at official level, and at the same time clear the provisions on diplomatic privileges and immunities for Chinese

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