CONFIDENTIAL

CONSCRIPTION/PLA

11.

Believe fears of people of Hong Kong on these points are

understood in Peking. These are matters for Chinese Government, I have no doubt that they will act prudently.

Chinese have not stated that they will conscript Hong Kong

12.

People.

TRANSMISSIBILITY

but

13. Understand disappointment in Hong Kong. Fought for it up to

last minute of negotiations.

STATELESSNESS

14. No one will be made stateless by agreement. We shall provide in legislation for non-Chinese BDTCs who do not acquire new status by 1997 and children of non-Chinese BDTCs born after 1 July 1997 to have a form of British nationality if they would otherwise be

stateless.

PASSPORTS

15. No decisions yet on passport format or timing of changes. Questionable however whether sudden change of passport style in 1997

is best way of ensuring acceptance by foreign governments.

CONSTITUTIONAL DEVELOPMENT

16.

Understand concern of Hong Kong people that change should not be too rapid or destabilising. There will need to be evolution if by 1997 there is to be a firmly-based, representative government in

local hands. But fully agree that approach must be step-by-step.

CONFIDENTIAL

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