CONFIDENTIAL

conclusion would be drawn that an individual's wealth or position (particularly if that position affected UK commercial interests) was of more importance than his personal qualities or any moral obligation on the part of HMG to the Hong Kong people. As the late Governor made clear in 1986, in the light of the decision not grant British citizenship to the ethnic minorities, arrangements for businessmen or investors would cause a major outcry in Hong Kong. We believe the present Governor would entirely endorse this judgement.

22.

There are also constraints placed on HMG by the requirements of the British Nationality Act 1981 in relation to the acquisition of British citizenship. The Home Secretary takes the view that British citizenship cannot be offered as a reward, honour or

inducement.

CONFIDENTIAL

Hong Kong Department

June 1988

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