CONFIDENTIAL

19681 1

Gay

SHORTLY ESTABLISHED:

SENIOR REPRESENTATIVE: DR D C WILSON CMG

MEMBERS: MR E P HỌ CHE

3.

MR JD I BOYD CMG

MR A C GALSWORTHY CMG

MR PAB THOMSON'

REPLIES TO FOLLOW-UP QUESTIONS:

(A) WHO ARE THE FIVE BRITISH MEMBERS?

DR WILSON: AUSS, FCO

MR HO: HONG KONG SECRETARY FOR TRADE AND INDUSTRY

MR BOYD: POLITICAL ADVISER, HONG KONG

MR GALSWORTHY: HEAD, HONG KONG DEPARTMENT, FCO

MR THOMSON: HEAD OF CHANCERY, BRITISH EMBASSY, PEKING

(B) MR ERIC HO'S INCLUSION IN THE JOINT LIAISON GROUP

'IN CONSIDERING THE MEMBERSHIP OF THE BRITISH SIDE OF THE JOINT

LIAISON GROUP, THE BRITISH GOVERNMENT'S PRIMARY CONCERN WAS TO DESIGNATE THOSE OFFICIALS INCLUDING HONG KONG GOVERNMENT

OFFICIALS WHO, BY VIRTUE OF THEIR EXPERIENCE AND EXPERTISE, ARE MOST ABLE TO CONTRIBUTE EFFECTIVELY TO THE WORK OF THE GROUP.

THE GROUP'S TERMS OF REFERENCE REQUIRE IT TO CONSIDER AT AN EARLY

STAGE, BEGIN UNDERLINING INTER ALIA, END UNDERLINING ACTION TO BE TAKEN BY THE TWO GOVERNMENTS TO ENSURE THE MAINTENANCE OF HONG

KONG'S PARTICIPATION IN THE GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT), THE MULTI-FIBRE ARRANGEMENT AND OTHER INTERNATIONAL ARRANGEMENTS. THUS THE BRITISH GOVERNMENT DECIDED TO DESIGNATE MR ERIC HO, HONG KONG'S SECRETARY FOR TRADE AND INDUSTRY, AS ONE OF THE FIVE MEMBERS ON THE BRITISH SIDE.

THIS DECISION, HOWEVER, CAUSED THE CHINESE GOVERNMENT SOME DIFFICULTY. AS IS GENERALLY KNOWN, THE BRITISH AND CHINESE GOVERNMENTS HOLD DIFFERENT VIEWS ON THE NATIONALITY STATUS OF HONG KONG BDTCS OF CHINESE ETHNIC ORIGIN. THE RESPECTIVE POSITIONS OF THE TWO GOVERNMENTS WERE SET OUT IN THE TWO MEMORANDA EXCHANGED AT THE TIME THE AGREEMENT WAS SIGNED.

IT WAS THEREFORE NECESSARY TO FIND A WAY ROUND THESE DIFFICULTIES. ON 11 MAY MR HO APPLIED FOR BRITISH CITIZENSHIP UNDER SECTION 4(5) OF THE BRITISH NATIONALITY ACT 1981.

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