ME2ANE(2)

Background

General

CONFIDENTIAL

Nationality

1.

At present, there are in the territory three and a quarter million British Dependent Territories Citizens (BDTC), nearly all of them ethnically Chinese. The question of nationality is a sensitive one in Hong Kong. During the negotiations on Hong Kong's future

Hong Kong people were concerned not to lose their British nationality as a result of the transfer of sovereignty. The Chinese Government regard all ethnic Chinese residents of Hong Kong, whether

BDTCs or not, as Chinese nationals. Chinese nationality law does not permit dual nationality. In an exchange of memoranda associated

with the Joint Declaration it has been

been agreed between the British

and Chinese Governments that BDTCs in Hong Kong may continue to use British passports after 1997, but not with BDTC status.

2. An Order in Council to implement the UK Memorandum was made on 5 June 1986. Under its provisions Hong Kong BDTCs will cease to have BDTC status on 1 July 1997. They will, however, be able to

acquire before that date a

British new nationality status known as National (Overseas) (BN(0)). This status will carry rights similar

to those of BDTC status but it will not be subsequent generations (a point which the Chinese were not prepared to concede). Passports in the new status of BN (0) will be issued

from 1 July 1987.

3.

them

in these

transmissible

arrangements

to

is

the

to

The most sensitive element position of 11,500 BDTCs in Hong Kong who are not ethnically Chinese (most are Indians). This group asked Her Majesty's Government

grant

British citizenship. After careful consideration HMG concluded it would not be right to grant this request. (There was

FCO Office and some tough bargaining between

Mr Waddington about

Secretaries of State became involved, and the matter went to OD (K).) The rationale for the decision was British citizenship would not give the ethnic minorities the right

between Mr Renton

others which were met.

and

Home

officials

and this request,

and

two

that

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