CONFIDENTIAL

(d)

5.

Ex Servicemen:

There is no FCO reason to resist the

granting of British citizenship to this group. Legal

advice is however that most of them are not eligible

under Section 4(5) of the BNA and there i s no other

discretion in the BNA allowing their registration.

I attach a short brief we have prepared for Mr Renton's

meeting with Mr Waddington.

6.

This is going to be

to

difficult debate: there will be

considerable sympathy in the House for much of what Miss Dunn

has urged. The Home Office tactics are likely to be to listen

hard to the arguments presented (on the grounds that this was

the purpose of having two debates) and to undertak e consider them, though they are also likely to point out the

difficulties involved.

I think this is right: i f

concessions. are made now, Hong Kong will probably pocket them

and a sk for more. The best time to make concessions would be

when presenting a definitive Order.

7.

any

SO

The difficulties in Hong Kong should not be

underestimated. When we inevitably reject some of Miss Dunn's

proposals there is likely to be a strong reaction. The Hong

Kong Government, under pressure of the unanimous advice of Unofficials in EXCO, have publicly endorsed the proposals, we shall be publicly rebuffing them. It will be important to

make som e concession to the proposals, and I hope that this will prove possible, at least on the passport endorsement. On

the other hand we

have been highly unpopular in Hong Kong on

nationality issues since at least 1981, there is little

realistic prospect of overcoming the general public resentment and suspicion, and I suppose that we do not therefore stand to

lose much that we have not already lost.

9 January 1986

A C Galsworthy

Hong Kong Department

CONFIDENTIAL

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