pastort holders.

This feeling is not new: it has

existed since the early 1960s when restrictions were

first introduced. But the controversy reawakens each

time new legislation enshrining this situation is

passed. The British Nationality Act of 1981 (which was

of course enacted partly in response to deep domestic

concern about the prospect of very large numbers of

people coming to the UK from Hong Kong) nevertheless

created particularly strong resentment in the territory.

The fact that Portuguese Nationality Law as applied to

Macao means that henceforth some Macao residents will be

able to enter the UK more easily than Hong Kong British

passport holders has provoked bitterness, although it is

well understood that the numbers involved in Macao are

small (a maximum of 100,000) compared with the 3.5

million in Hong Kong. Groups such as civil servants have

strong feelings about what they perceive as the UK's

obligations towards its nationals in Hong Kong.

By

focussing people's attention on their future, the Joint

Declaration has heightened resentment about this issue in

Hong Kong.

19.

That would

It is clear that we cannot afford the spectacular

gestures towards Hong Kong British passport holders

advocated by some press commentators.

undermine the British Nationality Act. It would also be

impossible to reconcile with our responsibilities towards

Hong Kong and the need to sustain confidence in the

territory. But while taking full account of these

considerations, there is no reason why we need ignore the

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