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authorise the telegram for despatch.

By that time we shall

also have had a reaction from the Home Office.

4.

In addition, I recommend that Mr Renton should discuss

the problem with Mr Waddington (who will lead for the Home

Office in the debate) before the end of the week. There are

three points to be discussed. On all the Home Office must

take the lead, but they are inevitably somewhat isolated from

the strength of feeling in Hong Kong and the political

considerations that lie behind it. The three issues are:

Yes.

ii)

i) a "no visa" endorsement in the new BNO passport;

whether a concession could be made to give full

UK citizenship to those non-ethnic Chinese who

under present arrangements will either have to

become Chinese or become stateless two generations after 1997; and

iii)

whether special arrangements for full UK

citizenship could be made for those who have served

the Crown in HM Forces during the war.

Of these (ii) is the only issue of real substance although (i) is likely to be argued equally passionately. On (iii)

a concession would cost HMG little: the number involved is

very small (about 400) and diminishing steadily by natural

causes. I suspect that most MPs will focus on (ii), with a good deal of emotional sympathy expressed on (iii) and some support for the UMELCO position on (i) from those who will

argue in simplistic terms that a "no visa" endorsement is a

plain statement of fact. Ministers will wish to consider

whether they wish to have a preliminary meeting with some of the interested and influential MPs from the Hong Kong group:

I think this would be useful.

Cc:

Sir W Harding FED

D C Wilson

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