4.

An Order in Council made under the Hong Kong Act 1985 is

necessary to implement this agreement. The Order is to be made

under the affirmative resolution procedure. But once laid, it can

either be approved or rejected by the House; it cannot be amended.

5.

Understandably, the details of the Order are of great concern

in Hong Kong, and the nationality provisions were the subject of

the bulk of the debates in Parliament on the Agreement and on the

Hong Kong Bill. To meet this concern, it was agreed that a draft

of a draft Order (described as "an Order with green edges") should

be submitted to Parliament for full debate. The Government would

then consider whether or not the points made during the debates

called for any changes to be made in the draft, in so far as these

were consistent with the Hong Kong Act. The re-draft would then

be presented for approval in the normal way.

6.

The Government stated during the course of the debate on

the Bill that it was the intention to make the Order within a year

of the Passage of the Bill (that is by April 1986). In order to meet this target date it is intended to re-present the draft Order, amended as necessary in the light of the debates, to Parliament

fairly early in the New Year.

7.

Both the White Paper and the draft Order have been agreed with FCO, and with Hong Kong officials, and with the Executive

Council of Hong Kong.

8.

Judging from the points made during the earlier debates, and the representations made since April, the major issues which

members are likely to raise during the debates are:

a)

the position of non-ethnic Chinese BDTCs in

Hong Kong and their descendents

b)

the acceptability of BN (0) passports to

third countries

c)

the right of abode endorsement to be entered

in BN (0) passports.

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