maximum of 100,000 people there have or are eligible for Portuguese nationality, out of a total population of half of a million.

8. In early 1989, news that Portugal had begun to issue EC common format passports to Portuguese nationals in Macao rekindled public controversy in Hong Kong, even though this did not reflect any change in the status of those Portuguese nationals. It was suggested, wrongly, that Portugual was granting citizenship to all residents of Macao. This is not the case. Nor is Portugal operating any kind of assurance package (see below) for Macao.

Assurances Scheme

9.

Confidence in Hong Kong was shaken by the events in China in June 1989. On 20 December the Foreign Secretary announced the Government's intention in introduce a

assurance scheme and they on 4 April introduced the British Nationality (Hong Kong) Bill designed to give British citizenship to 50,000 people their spouses and children under 18 in private and public sectors on the basis of value of service to Hong Kong as well as connections with Britain. The aim is to give people whose professional, administrative, technical and managerial skills are essential for the continued success of Hong Kong the confidence to remain in the territory.

10. The Bill received Royal Assent on 26 July. The details of the selection scheme to identify principal beneficiaries under the Bill will be set out in an Order in Council which will be laid before Parliament in the Autumn.

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