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056546 MDLIAN O. 6

4. MR EDWARDS' POINT ABOUT POSSIBLE CONTRAVENTION OF JD30 (HMG'S RESPONSIBILITY TO MAINTAIN PROSPERITY AND STABILITY) IS BASED ON THE PREMISE THAT ALL HKBDTCS WOULD BE GRANTED THE RIGHT OF ABODE IN THE UK, AND THAT MOST OR MANY OF THEM WOULD EXERCISE THIS RIGHT THUS LEADING TO LARGE-SCALE WASTAGE OF BDTCS IN HONG KONG. THIS DOES NOT ARISE WITH THE NATIONALITY PACKAGE NOW UNDER CONSIDERATION. IN ANY CASE, OUR VIEW REMAINS THAT VERY FEW OF THOSE GRANTED BRITISH CITIZENSHIP WILL IN FACT LEAVE HONG KONG AND SETTLE IN THE UK. EMIGRATION STATISTICS BEAR OUT THE FACT THAT UK IS NOT A FAVOURED EMIGRATION COUNTRY FOR HONG KONG PEOPLE. RATHER, THE LIMITED NATIONALITY PACKAGE NOW UNDER CONSIDERATION WILL HAVE THE AIM AND THE EFFECT OF RETAINING KEY PEOPLE IN HONG KONG. IF IT IS LARGE ENOUGH TO BE EFFECTIVE IT THUS HAS THE EFFECT OF CONTRIBUTING TO, AND NOT/NOT UNDERMINING HMG'S RESPONSIBILITIES UNDER JD 80.

JOINT DECLARATION : CHINESE MEMORANDUM

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5. THE CHINESE HAVE NEVER DEFINED CLEARLY WHAT THEY MEAN BY HONG KONG CHINESE COMPATRIOTS' IN JD233. SPECIFICALLY, THEY HAVE NEVER MADE CLEAR WHETHER THE TERM IS INTENDED TO EMBRACE HONG KONG CHINESE WITH FOREIGN PASSPORTS WHO ARE RESIDENT IN HONG KONG BUT WHO HAVE NOT FORMALLY RENOUNCED THEIR CHINESE NATIONALITY. HOWEVER, THE PRIMARY PURPOSE OF THE MEMORANDUM IS TO SET DOWN THE POSITION OF BDTCS, AS SEEN BY THE CHINESE GOVERNMENT. IT WOULD NOT SEEM TO CONFLICT WITH A PACKAGE DESIGNED TO ENABLE BDTC/BN (0)S TO ACQUIRE BRITISH CITIZENSHIP.

CHINESE NATIONALITY LAW (CNL)

6. HOW THE NATIONALITY PACKAGE WOULD STAND VIS-A-VIS THE CNL IS MORE UNCERTAIN. THE CNL IS SUFFICIENTLY AMBIGUOUS TO ALLOW THE CHINESE TO ADOPT AN INFLEXIBLE POSITION OR A PRAGMATIC ONE. IF THEY DECIDE TO BE DIFFICULT, THEY COULD ARGUE THAT BENEFICIARIES OF THE NATIONALITY PACKAGE HAVE NOT MET THE 'SETTLEMENT ABROAD' REQUIREMENT IN ARTICLE 9 OF THE CNL. BUT THEY MIGHT BE PRAGMATIC AND ACCEPT THAT, ON ACQUIRING BRITISH CITIZENSHIP VOLUNTARILY, THE PERSONS CONCERNED WOULD LOSE AUTOMATICALLY, OR BE DEEMED TO HAVE RENOUNCED UNDER ARTICLE 10, CHINESE NATIONALITY.

7. SUCH A PRAGMATIC ATTITUDE WOULD ACCORD WITH PAST PRACTICE. WE ARE NOT AWARE OF ANY CASES WHERE THEY HAVE QUESTIONED OR DECLINED TO ACCEPT THE LEGITIMACY OF THE BRITISH CITIZENSHIP OF ANY ETHNIC CHINESE. IT WAS EXPRESSLY ACCEPTED IN THE CASE OF ERIC HO. AND

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