CONFIDENTIAL

affect anyone who is not a British Dependent Territories citizen, or

whose citizenship can be derived wholly from a connection with another

dependent territory. But it is not sufficient simply to refer in the

Order to "a connection with Hong Kong" without defining what such a

connection may be. Article 2 of the draft Order provides that definition.

It sets out in a convenient and logical format all the ways in which

a person may have become connected with Hong Kong. It encompasses all

the Hong Kong British Dependent Territories citizens listed in Annex 2

to the White Paper, although as the White Paper explains, virtually all

such people in Hong Kong are citizens by birth, registration or

naturalisation there. It is possible, however, that a citizen may be

able to trace this connection through a number of the circumstances set

out in Article 2 and in the more detailed Annex 2. They are not intended

to be mutually exclusive. While the categories in Article 2 are satisfactory

for legislative purposes, the greater detail given in Annex 2 is intended

to help people who may be affected more clearly to identify from matching

their circumstances with the list, whether they come within the Order.

11.

Article 2

Article 2 and Article 3 are designed to be read together.

defines connections with Hong Kong for the purposes of the Order: Article 3

provides that anyone who is a British Dependent Territories citizen by

virtue of such a connection should cease to be such a citizen on 1 July 1997

the date when Hong Kong reverts to China.

12.

Article 4 sets out the way in which the new status of British National

(Overseas) may be acquired by those who will cease to be British Dependent

Territories citizens in 1997. The terms of the UK Memorandum provide

that this status will be acquired by such persons only if they hold or

are included in a BN (0) passport issued before 1 July 1997, or before

the end of 1997 in the case of persons born in the first six months of

that year.

Under the terms of the Agreement therefore it will not be transmitted to descendants born after 1997. All eligible British Dependent

Territories citizens will be entitled to acquire BN(0) status. Acquisition

will be by registration. This is consistent with the long-standing

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