limited to the span of a generation. But a decision on

the passport could affect sentiment: among Hong Kongers

about the agreement with China and their status after

rec 1997.

>

Conclusion

11. There is no ideal solution. There is some risk

that the recommendation could give rise to difficulties

for British nationals with EC rights, though since the

old passport will not be phased out entirely until

1997, it seems unlikely that they would be acute for

some years.

But Ministers will no doubt consider that

the political cost of proposing to issue an entirely

different passport means that this risk must be

accepted.

P S Fairweather

European Community

Department (Internal)

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