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even to expatriates. As administration passes more fully

into local hands, the expertise needed for participation in

the Group will increasingly be found among local people.

NATIONALITY TITLE

10. Now being pressed to say what will be title of new

"status" referred to in British Memorandum. Considerable

feeling in parliament and in Hong Kong about this. Shall

soon need this, in order to put in legislation. Very

important to ensure acceptance by third countries of British

passports corresponding to new status. Two essential requirements: first, in order to be able to issue passports

we must make it clear in our law that new status is a form of

British nationality Second, must clearly indicate that the

status is unique to ex-BDTCs connected with Hong Kong.

Otherwise there will be confusion and problems may arise in

third countries.

11. Therefore propose to describe new status as "British

national: Hong Kong" in our nationality law. In passports, description of national status will be "British Hong Kong".

Believe this is minimum necessary to make clear to third

governments nature of document and status of holder, without

implying Chinese acceptance of dual nationality. (Will

naturally be no reference to Chinese nationality, either in

British nationality law or in passports corresponding to new

status.)

CONSTITUTIONAL DEVELOPMENT

12.

Considerable pressures in Hong Kong now for

constitutional development, and increasing all the time.

Have adopted cautious attitude. White Paper proposals allow

visible progress but unlikely to give rise to any radical

change. Review in 1987.

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