GPS 350
CONFIDENTIAL
FM HONG KONG
TO DESKBY 24110OZ FCO
TELNO 895
OF 24100OZ MARCH 86
CONFIDENTIAL
нии Han oudly
RECEIVED IN REGISTRY'
2 5 MAR 1986
DESK OFFICER.
INDEX
PA
M
TOP COPY
REGISTRY
Action Taken
397
PERSONAL FOP LAY LEN, HONG KONG
359
2
GOVERNOR
YOUR TELNO 346 : BRITISH CITIZENSHIP : REQUEST BY HONG KONG
BUSINESSMEN
1. GIVEN THE SENSITIVITY OF NATIONALITY ISSUES 1 WOULD PECOMMEND
THAT NO DECISION SHOULD BE TAKEN ON THIS MATTER AT THE PRESENT
TIME. WE MUST WAIT TO SEE WHAT DECISIONS ARE TAKEN BY MINISTERS
ON THE THREE ISSUES PAISED BY LEGCO AND JUDGE THE REACTION IN
HONG KONG TO THOSE DECISIONS.
2. ONCE THAT IS OUT OF THE WAY IT MIGHT BE POSSIBLE TO LOOK AT
THE PROPOSITION RAISED BY MP SANDDERG. THERE ARE TWO CONFLICTING
CONSIDERATIONS. THERE COULD INDEED, AS THE HOME OFFICE SUGGEST, DE
ACCUSATIONS OF ACCORDING A PRIVILEGED POSITION TO PICH MEN IN THE
ACQUISITION OF BRITISH CITIZENSHIP IN RETURN FOR INVESTMENT IN THE
UNITED KINGDOM. THERE COULD BE OVERTONES OF BUYING PASSPORTS''.
THIS WOULD PARTICULARLY SO IF IT APPEARED THAT BRITISH CITIZENSHIP
WAS BEING GRANTED UNDERLINE NEXT WORD PRIMARILY IN RESPONSE TO
INVESTMENT IN THE UK.
•
3. THERE COULD, HOWEVER, BE BENEFIT TO HONG KONG IF THE GRANT OF BRITISH CITIZENSHIP COULD BE USED TO ENCOURAGE THE PETENTION
UNDERLINE NEXT THREE WORDS IN HONG KONG OF VERY SUBSTANTIAL
INVESTMENTS. THIS WOULD MEET THE PM'S POINT (YOUR TEL UNDER REF
PARA 5). IT NEED NOT EXCLUDE PARALLEL INVESTMENT IN THE UK.
4. A KEY ISSUE, AS 1 SEE IT, IS THAT BRITISH CITIZENSHIP, ONCE GPANTED, COULD SCARCELY BE WITHDRAWN. DISINVESTMENT, ON THE OTHER HAND, CAN BE UNDERTAKEN AT ANY TIME. THE QUESTION IS WHAT
GUARANTEE THERE WOULD BE, IF THOSE CONCERNED WEPE GRANTED PRITISH
CITIZENSHIP, THAT THEY WOULD MAINTAIN SUBSTANTIAL INVESTMENTS IN
HONG KONG.
5. TO DEAL WITH THIS IT MIGHT BE POSSIBLE TO ENVISAGE SOME
GENERAL DECLARATION OF INTENT ACOUT CONTINUING INVESTMENT, COMBINED
WITH SOME SORT OF IPREVOCAPLE INVESTMENT TRUST, WITH A MINIMUM
FIGURE FOR INVESTMENT IN HONG KONG, (AND IN THE UK) WITH
DISINVESTMENT BEING PERMITTED ONLY TO THE EXTENT PERMITTED BY THE
TRUSTEES.
CONFIDENTIAL
16.