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CONFIDENTIAL

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(B)

(I)

30 JUNE 1997: THEY CANNOT BE BDTCS, BECAUSE NEITHER PARENT WILL BY THEN BE A BDTC OR SETTLED IN A DEPENDENT TERRITORY (HONG KONG HAVING CEASED TO BE A DEPENDENT TERRITORY ON

1 JULY 1997): AND THEY CANNOT BE BRITISH CITIZENS BECAUSE

NEITHER PARENT WILL BE A BC OR SETTLED IN THE UK.

ARTICLE 4(2).

IT WOULD NOT BE POSSIBLE TO ADD THE WORDS 'STATING THE

HOLDER'S RIGHT OF ABODE IN HONG KONG' TO ARTICLE 4(2) FOR

THE FOLLOWING REASONS:

(I)

THE GRANT OF RIGHT OF ABODE IN HONG KONG PRIOR TO

1997 IS AN ADMINISTRATIVE MATTER FOR HONG KONG AND

FLOWS FROM HONG KONG RATHER THAN WESTMINSTER

LEGISLATION. IT WOULD THEREFORE BE WRONG TO MENTION

IT IN WESTMINSTER LEGISLATION:

(II) THE WORDING PROPOSED WOULD IN ANY CASE NOT ACCORD

WITH THE POST-1997 SITUATION. THE CHINESE STRESSED

DURING THE NEGOTIATIONS THAT THE BRITISH WOULD NOT

AFTER 30 JUNE 1997 BE ABLE TO ENDORSE BN(0) PASSPORTS

WITH A STATEMENT THAT THE HOLDER HAD THE RIGHT OF

ABODE IN HONG KONG SINCE THIS WOULD THEN BE A MATTER

FOR THE CHINESE. THUS SECTION (XIV) OF ANNEX I

ALLOWS ONLY THAT HOLDERS OF PERMANENT ID CARDS MAY

HAVE THIS FACT STATED IN THEIR TRAVEL DOCUMENTS

AS EVIDENCE THAT THE HOLDERS HAVE THE RIGHT OF ABODE

IN THE SAR.

DESPITE THESE OBJECTIONS TO INCLUDING SUCH WORDING IN THE

ORDER, YOU MAY CERTAINLY TELL EXCO THAT WE ARE SURE

MINISTERS WOULD NOT SEE DIFFICULTIES DURING THE DEBATE ON

THE ORDER IN REPEATING THE ASSURANCES ON RIGHT OF ABODE

ENDORSEMENTS IN BN(0) PASSPORTS WHICH THEY HAVE ALREADY

GIVEN TO PARLIAMENT.

(II) EXCO HAVE ALSO ASKED THAT ARTICLE 4(2) BE REVISED TO ACCORD

MORE CLOSELY WITH THE WORDING OF THE UK MEMORANDUM. WE DO

NOT FULLY UNDERSTAND EXCO'S CONCERN ON THIS POINT. THE

MEMORANDUM DELIBERATELY AVOIDS ANY MENTION OF NATIONALITY,

ALTHOUGH IT IS CLEARLY UNDERSTOOD THAT THE STATUS REFERRED

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CONFIDENTIAL

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