CONFIDENTIAL

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PARAGRAPH TWO

Paragraph 2 of the schedule provides an enabling power for an Order

in Council to be made, subject to affirmative resolution,

to create

a new form of British nationality which may be acquired by persons

who are British Dependent Territories citizens (BDTCs) by virtue of

a connection with Hong Kong, to withdraw BDTC status from such

persons on 1 July 1997, to make provision for avoidance of

statelessness and to make such other amendments as may be necessary

to the British Nationality Act 1981 (BNA 1981).

UK

1997.

paragraph

H MG to make such

consequence of the

in

The purpose of this

is to enable

nationality provisions as may be necessary as a

ceasing to have sovereignty or jurisdiction over Hong Kong

In particular, it permits HMG to give effect to the

nationality provisions in the United Kingdom memorandum associated

with the Joint Declaration on the future of Hong Kong.

The

memorandum was passed to the Government of the People's Republic of

China when the Joint Declaration was signed by the

Chinese Prime Ministers on 19 December 1984.

The

British and

nationality provisions of the UK Memorandum, the wording of

which had been agreed

in

(although the Chinese are not

advance with the Chinese Government

prepared publicly to acknowledge that

fact) provide that, subject to the completion of the necessary

amendments to the relevant UK legislation: -

force

in

(a) All persons who on 30 June 1997 are, by

virtue of a connection

with Hong Kong, British Dependent Territories citizens (BDTCs) under

the law in

the United Kingdom will cease to be BDTCs with

effect from 1 July 1997, but will be eligible to retain an

appropriate status which, without conferring the right of abode in

the United Kingdom, will entitle them to continue to use passports

issued by the Government of the United Kingdom. This status will be

acquired by such persons only if they hold or are included in such a

British passport issued before 1 July 1997, except that eligible

persons born on or after 1 January 1997 but before 1 July 1997 may

obtain or be included in such a passport up to 31 December 1997.

CONFIDENTIAL

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