CONFIDENTIAL

1

4.

Whatever the

non-ethnic Chinese

would

Chinese.

eventual decision on citizenship for the

Chinese minorities in Hong Kong, I believe it

be politically impossible both here and in Hong Kong

in effect to "sell" British citizenship to these wealthy

This would be very damaging for our standing in

Hong Kong and for confidence there. The Chinese Government

might well resent our providing these people with a

"bolt-hole": this would affect the smooth working of the Joint Liaison Group and hence Hong Kong's general interest.

5.

from the

close link

I thus do not think the Governor's idea of tying British citizenship to a "captive" investment in Hong Kong

could possibly be a starter. It is even further

BNA principle that citizenship should reflect a

with a territory than is the idea of tying it to investment

to institutionalise

arrangement would necessarily make it public and

invite further members to join a "rich man's

payment of an appropriate entry fee.

in Britain.

6.

Moreover

such

an

in

effect

club"

on

For the moment I think we should rest on

Governor's quite reasonable advice that no decisions

the

be

taken until we have been able to judge the reaction in Hong

Kong to our decisions on the three LegCo proposals. The

likely decision against granting British citizenship to non-ethnic minorities in Hong Kong would further undermine

any argument, whether from the Governor or from the Prime

Minister, in favour of giving exceptional treatment to the

rich Chinese. However the draft letter expresses support

in principle for the Home Secretary's position.

understand that this accords with the line taken by the

Secretary of State at his meeting with the Home Secretary

this morning.

I agree

wilt the argument in the subersicon but think that

The draft letter neede

to be

allowed to reflect it, even if

Conten

CO Hum

we do

to

Spell

ar

Hong Kong Department

26 March 1986

بالا

I

the NON-ethnic Chiene

are cleare). I have

the full argumente or the stage (before the NON- question is resolved Suggested

a

and the Soverwor's Kews raws

redraft.

CONFIDEN TIAL

a. (clave).

27:1

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