19.

It is clear that we cannot afford the spectacular

gestures towards Hong Kong British passport holders

That would

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.

The decisive factor must be what is best for

Hong Kong. But while taking full account of these

considerations, there is no reason why we need ignore the

opportunities presented by entrepreneurs and other

talented or deserving individuals who have decided to

leave Hong Kong and who wish to invest and/or make their

lives overseas. People in this category could make a

signficiant contribution to Britain and Hong Kong after

1997. We need to ensure that such individuals understand

that they would be welcome in Britain and that our rules

on settlement and nationality can be operated flexibly.

Provided we proceed discreetly and with our

responsibility towards Hong Kong clearly in mind, it

should be possible to ensure that Britain secures a

reasonable share of the entrepreneurial talent that is

seeking to establish itself outside the territory.

ANGLO-HONG KONG LINKS

20.

One way in which we can underline our commitment to

the territory is by making it clear that we intend to maintain a substantial official presence in Hong Kong

after 1997 and to do all that we can to promote more

extensive links between Britain and Hong Kong, both

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