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4

acceptance is crucial to maintaining confidence and stability

in Hong Kong. A key point we have emphasised in explaining

BN(0) status to Hong Kong people and to third countries is that

BN (O)s will be fully eligible for British consular services

and protection (this facility is actually enshrined in the

UK Memorandum associated with the Sino-British Joint Declaration

on the Question of Hong Kong). Any perception that we were

seeking to avoid honouring this commitment in full would very

seriously damage not only our campaign to gain acceptance

for BN(0) status and passport, but also the whole fragile

edifice of confidence in the future of Hong Kong. The political

arguments in favour of retaining a commitment to last resort

repatriation to Hong Kong beyond 1997 for BN (O)s seem therefore

to be conclusive.

9.

Finally, we should also take account of:

a) the possibility that there may be a few non-ethnic

Chinese BDTCs in Hong Kong who might decide not to

take up their entitlement to BN (0) status. Under the

terms of the Hong Kong Nationality Order in Council

any Hong Kong BDTC who for any reason does not acquire

BN (0) status before 1 July 1997 and who has no other

nationality will automatically become a BOC on

1 July 1997; and

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/b) the

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