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CONFIDENTIAL.

Background

1.

This remains one of the most controversial and sensitive topics

in Hong Kong.

2.

Draft Hong Kong Nationality Order in Council published on 17 October 1985. Debated in House of Commons 16 January and House of Lords 20 January 1986. Order is to establish a new form of British

national status to be known as British National (Overseas) (BN(O))

which will be available to Hong Kong BDTCs wef 1 July 1987 and which

may be retained for life.

3.

Lydia Dunn, Senior Unofficial Member of Legislative Council

(UMELCO) in Hong Kong wrote to all MPs on 3 January expressing

LMEL.CO's support for 3 main proposals in connection with the draft

Order.

(a)

(b)

(c)

These were:

an endorsement for BN(O) passports to the effect that holders do not require visas or entry certificates to visit UK;

ex-World War I I servicemen in Hong Kong should be registered as British Citizens under British Nationality Act; and

ethnic minority BDTC' s in Hong Kong should be registered as

British citizens.

4.

said was

During Parliamentary debates most speakers generally supported UMELCO's proposals. Home Office Ministers said they would carefully

consider all chat

before resubmitting the Order to

Parliament for approval. Following the debates a team of Hong Kong Government officials visited the UK to provide the Home Office with

further background infomation on the three points. The information they provided has enabled the Home Office to move forward and they will shortly be able to submit to Ministers for decisions.

CONFIDENTIAL

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