CONFIDENTIAL

to ensure that no-one is left stateless in 1997. The

provisions made will apply to any former Hong Kong

BDTCS, whatever their ethnic origin, who do not become

BN(0)s and who would otherwise be stateless, and their

children and grandchildren. To grant British citizenship

to the non-ethnic Chinese BDTCs simply on the grounds

that they will not be regarded as Chinese nationals would

in itself be racially discriminatory. Furthermore, it

will undoubtedly lead to claims for similar treatment

from the Chinese Hong Kong BDTCs. Such claims, which would

have to be denied under the terms of the Agreement would be deeply devisive in Hong Kong at a time when we should

be doing all we can to promote harmony and confidence.

Would

f) The provisions of Article 6 will enable non-ethnic Chinese Hong Kong BDTCs and their descendents to retain a form of British nationality for 3 generations, until about

the middle of the next century. By then the link with

Britain will be more then tenuous. The Government believe

that the right way for these people who are living in what will by then have been part of China for over 50 years will

be to seek

Chinese nationality.

g)

The Government have also made it plain that in the unlikely event of any British national being forced to leave Hong Kong and having nowhere to go, they would expect the Government of the day to consider sympathetically whether

to admit them, on a case by case basis.

Scope for Amendment

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5.

Highly undesirable.

[There is nothing in law to prevent

conferring British citizenship rather than British Overseas citizenship on those who would otherwise be stateless, and their children and grandchildren. But any such concession to the Indian community (the great majority of BDTCs in Hong Kong), who were very disappointed at being unable to secure a transmissible form of British nationality. The necessary ejection of any such demand would be likely to lead to widespread dissatisfaction in Hong Kong, which would jeopardise the smooth implementation of the Agreement].

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