R JF Hoare Esq

CONFIDENTIAL

Subject to your views on the principles involved, we wonder whether it might be useful to consult Parliamentary Counsel about this to see whether he is satisfied that the powers in the Bill give us sufficient flexibility to define "a connection with Hong Kong" so as to exclude some "mixed" BDTCs if necessary.

Encs.

J P EMERY

Nationality Division.

2 -

CONFIDENTIAL

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