CONFIDENTIAL

6. Reservations of Hong Kong Executive Council described in paragraphs 11-12 of Memorandum. These might well find echoes in

Parliamentary debate.

Parliamentary Handling

7.

i)

On

Aspects of Bill most likely to attract comment in debate are:

Nationality (paragraphs 4, 5 and 12 of Memorandum).

Ministers will need to be ready to explain outline of

nationality provisions, why they are in the Bill and wh y

they take the form of enabling provisions. FCO and Home

Office officials are in close contact over the detailed

line to take. Would welcome assistance of Home Office

Ministers when these aspects of Bill are discussed.

the new nationality title (paragraph 5 of Memorandum),

"British national: special status" has been suggested to

EXCO. Their initial reaction was unfavourable, but they

will consider it again on 9 January. Another

possibility is "British Overseas National". We shall

take matters forward as quickly as possible in

consultation with the Home Office, in hope that title can

be agreed with Chinese and incorporated in Bill.

Sovereignty (paragraph 11 of Memorandum). Will need to

explain why termination of sovereignty is covered in Bill

itself, 12 years in advance of Hong Kong's restoration to

China. Essential to permit ratification. In extreme

case of Chinese non compliance with agreement, this

procedure is just as "reversible" (by subsequent amending

legislation) as a provision for termination by subsequent

Order in Council would be.

ii)

iii)

Privileges and Immunities. Always sensitive in

Parliamentary terms but only involves 5 individuals in

London for a few days a year.

As Memorandum states, precedent suggests that all stages should

be taken on the floor of the House.

8.

CONFIDENTIAL

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