X.

CONFIDENTIAL

They will be entitled to BN(0) status but if for any reason they do not become

BN(0)s, they will nevertheless have a recognized nationality status, and so

will the descendants of BN(0)s and British Overseas citizens until well into

the middle of the next century.

17.

The Government recognise, of course, that nationality status alone is

not sufficient. It is equally important that those now established in Hong

Kong should continue to have a right of abode there. Clearly, right of abode

in Hong Kong after June 1997 cannot be secured by holding any form of British

nationality, since Hong Kong will no longer be part of British territory.

For this reason the Agreement made separate provisions to safeguard rights

of abode in Hong Kong. These are set out in Section X1V of Annex I to the

Joint Declaration. As far as the non-ethnic Chinese community is concerned,

they guarantee the right of abode in Hong Kong after 1997 to all those who

have been ordinarily resident for seven years in Hong Kong either before or

after the establishment of the Hong Kong Special Administrative Region, and

who have taken it as their place of permanent residence. The same guarantee

extends to their children; and also to anyone who had right of abode only

in Hong Kong before 1 July 1997. They cover all the non-ethnic Chinese British

Dependent Territories citizens in Hong Kong, unless they have left Hong Kong

permanently and have the right of abode elsewhere.

18. The Indian community in particular, with support from the Unofficial

Members of the Executive and Legislative Councils of Hong Kong, argue that

these provisions do not go far enough. They are concerned firstly that BN(0)

status will not itself give them right of abode in Hong Kong: this will be

a matter for the Chinese Government. And secondly, they are concerned about

the future of their descendants after the second generation born after 1997.

They have therefore asked to be granted British citizenship, rather than

BN(0) or BOC status. British citizenship does, of course, carry with it the

right of abode in the UK.

19. I have to say that the Government is not persuaded that it would be right

to grant British citizenship to BDTCs in these circumstances. British citizenship will not help them to secure their future in Hong Kong, which is where they

wish to continue to live. Their future is secured under the agreement. Furthermore, it would not benefit future generations any more than the present proposals. British citizenship can be transmitted to only one generation born abroad. The second generation has an entitlement to registration as

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