CTWAFJ (4)

CONFIDENTIAL

HONG KONG: CITIZENSHIP FOR HONG KONG BUSINESSMEN

References: A: Mr Powell's letter of 20 December 1988

B: Mr Hurd's letter of 25 January, enclosing draft notes

C: Mr Powell's letter of 22 February, recording details

of the Governor's call on the Prime Minister

Background

1.

We understand from Sir P Cradock that at a recent meeting

with the Prime Minister, Lord Carrington raised the question of

passports for Hong Kong businessmen. We are not aware that Lord

Carrington has previously shown any interest in this subject.

2. Lord Carrington's intervention is the latest in a series of such

approaches from a wide variety of people including Lord Young, Lord

Wyatt, Lord Fanshawe, Lord Chalfont and Mr Keswick. It is likely to confirm the Prime Minister in her view, recently expressed to the

Governor of Hong Kong, that we should do more to attract

enterprising Hong Kong people to the UK. The Prime Minister

apparently quoted to the Governor Lord Carrington's view (also advanced by others) that even if Hong Kong businessmen were granted British passports most of them would not actually come here.

3.

This issue will be debated in the House of Lords on 14 March.

Lord Wyatt has tabled an Unstarred Question asking HMG "whether they will reconsider their policy on the issue of British passports to

British citizens".

4.

Under current arrangements, businessmen can be granted entry for settlement purposes if they invest £150,000 in a way which creates two new jobs. Settled status is granted after four years residence and citizenship after five, but the Home Secretary has considerable discretion to allow absences during the qualifying period.

CONFIDENTIAL

Hong Kong Department

6 March 1989

BACKGROUND

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