CODE 18-77

Reference

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The British Nationality (Hong Kong) Act, has just completed its passage through Parliament. Not all these initiatives have been welcomed by the Chinese Government. But we have considered it in Hong Kong's interests to pursue them and have done our best to persuade the Chinese Government of this. We have noted the most recent Chinese comment on the Nationality Act. Although this repeats their past views, I cannot but feel some disappointment. The sole aim of the Act is to encourage key figures in Hong Kong to stay on up to and beyond 1997. This will benefit Hong Kong and China. The Chinese attitude will not detract from that: the Joint Declaration provides for freedom of travel after 1997 and beneficiaries of the Act will know that they have a place to go. We are confident that this will give them the necessary assurance to remain."

31 July 1990

cc: Mr McLaren

Mr Seaton, FED

Mr Mower, News Dept

فهد

P A Major (Ms)

Hong Kong Department WH305

270 2655

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