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(c) grants diplomatic privileges and immunities to the five Chinese

members of the Joint Liaison Group who will attend meetings

Group in London.

of the

Others

4. The main area of controversy is likely to be the nationality

provisions of the Bill. There may be some disappointment that the

Bill does not itself deal definitively with all the changes to

nationality law which will be necessary. Certain Members of

Parliament may propose amendments to make it clear that there can be

no question of large scale immigration to the UK, or otherwise to

restrict the rights relating to the new form of nationality.

may press us to be more generous. Unofficial Members of Hong Kong's

Executive and Legislative Councils are likely to lobby hard for

their own particular interests. We should however be able to argue

that the enabling power in itself is not controversial. Detailed

nationality provisions will be implemented by subsequent Orders in

Council, which will be subject to affirmative procedures and can

therefore be debated by Parliament. In the last resort we could

jettison the nationality provisions, which are not essential for

ratification, if it was clear that otherwise the Bill could not

not be

passed in time to

to meet the ratification deadline.

5. It is conceivable that the termination of sovereignty in the

Bill 12 years in advance of the transfer of administration could

cause controversy. The subject of diplomatic privileges and immunities is also sensitive, although in this case the extension of

privileges and immunities is not a very significant one.

TERRITORIAL EXTENT

6.

The Bill will apply throughout the United Kingdom and to all

British possessions.

TIMING

7. The Joint Declaration states that ratification will take place

before 30 June 1985. Royal Assent should therefore be given as soon

as possible, and in any case not later than 15 June 1985 SO as to

allow time for ratification procedures.

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