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the same returnability to Hong Kong, both before and after 1997, as BDTCs from the territory have now and that this has been agreed with the Chinese Government. For your own information however, there will almost certainly be some individuals who may acquire BN (0) status but who will, after 1997, lose the right of abode in Hong Kong and hence will not be returnable there. This situation arises as a result of the terms of Section XIV of Annex I to the Joint Declaration, which sets out the categories of persons who will have the right of abode in Hong Kong after 1997. For non-Chinese the essential requirement is that they should have lived in Hong Kong for a continuous period of 7 years and have taken Hong Kong as their place of permanent residence. However, Section XIV does also provide that anyone who, prior to 1997, has the right of abode only in Hong Kong shall continue to have that right after 1997. These provisions are not entirely consistent with Hong Kong's current immigration ordinance, with the result that a minimal number of people (mainly non-Chinese BDTCs) may qualify for BN (0) status but will lose the right of abode in or after 1997. But those BN (0)s who lose the right of abode in or after 1997 will in practice only be those with that right somewhere else. The Note being sent to Missions in London and the Annex to this letter both refer to the likely existence after 1997 of this anomalous group.

In view of the small numbers who will be affected (we estimate of the order of 0.01 per cent of all potential BN (O)s) we do not want to draw particular attention to a point of such limited practical significance. On the other hand we would not want to give the misleading impression that the problem did not exist. If asked further about exceptions to the rule of returnability to Hong Kong among BN (0)s after 1997 you may draw on the above in explanation, but please also emphasise:

(a) the very small numbers likely to be involved:

(b) the fact that such people must have the right of abode (and

hence be returnable) elsewhere.

Movement from Mainland China

5.

A further point you should emphasise is that since first-time passports showing BN (0) status can only be obtained before 1 July 1997, (although replacements can be obtained subsequently), there can be no question of mainland Chinese residents entering Hong Kong after that date in order to acquire such passports. Furthermore, there will in any case continue to be control of movement across the border between the Special Administrative Region and the rest of China. Section XIV of Annex I to the Joint Declaration stipulates that:

"Entry into the Hong Kong Special Administrative Region of persons from other parts of China shall continue to be regulated in accordance with the present practice."

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