E.R.

Hinn

340+

RECEIVED IN REGISTAM

TIME.

19 MAY CONFIDENTIAL

SK OFFICER

Mr Fries

PA

cc Mr Tompkins

Teltotte

(735)

Mr Rawsthorne

Mr Boyle Mr Emery

Mr Seymour

M Hill (HKD, FCO)

HONG KONG: THE GRANTING OF SETTLEMENT TO FORMER SERVICEMEN AND THEIR DEPENDA AND TO NON-CHINESE BDTCs

(625)

The attached telegram No 1277 of 30 April from Hong Kong seeks confirmation

of the basis on which settlement would be granted to former servicemen who

do not qualify for British citizenship and to non-Chinese BDTCs if they were

to come under pressure to leave Hong Kong after 1997. The simple answer on

both points is that settlement would be granted outside the Rules under the

provisions of section. 4(1) of the Immigration Act 1971.

However, the full answer to this question is rather more complex and the leg

and constitutional issues are very much bound up with the practical arrangem

that we might introduce. I have discussed these with Mr Seymour and Mr Boyl

The ex-servicemen and their dependants represent a clearly defined category

and it seems unecessarily bureaucratic to ask Hong Kong to submit such

applications to us. Since the question of granting settlement to those who

might come under pressure to leave after 1977 is purely hypothetical at

present, we have no means of knowing what circumstances might justify such

action or what criteria would have to be applied. It seems clear, therefore

that this function could not be delegated to Hong Kong unless and until firm

criteria were established in the light of the circumstances at the time.

4

In the case of the ex-servicemen and their dependants, therefore, we would

envisage Hong Kong issuing entry clearance applications for settlement in th

normal way so that the immigration officer would place an indefinite leave t

enter stamp in the passport on arrival. The difficulty about this is that

section 4(1) of the 1971 Act clearly distinguishes between the immigration

officer's power to give leave to enter and the Secretary of State's power to

give leave to remain in the United Kingdom. Can the immigration officer rea

be said to be exercising a discretion on behalf of the Secretary of State in

these circumstances? From my discussion with Mr Seymour it seems that the

position on this is byno means clear but we might reasonably point to para-

graph 1(3) of Schedule 2 to the 1971 Act which says that "In the exercise of

their functions under this Act immigration officers shall act in accordance

with such instructions (not inconsistent withthe Immigration Rules) as may b

given them by the Secretary of State." The words in parenthesis represent

CONFIDENTIAL

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