CONFIDENTIAL #2

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3

Unless

either of these courses is taken, such

persons, by virtue of their birth in Hong Kong, cannot

be covered by para. 2(4) because they have not entered

Hong Kong with valid travel documents. Neither will

they be covered by para. 2(5) if their parents were

also born in Hong Kong. The Chinese proposed revision

to para. 2(4) would therefore tend to discriminate

against

persons not of Chinese nationality whose

families have been settled in Hong Kong for many years,

relative newcomers would be eligible to acquire

whereas

right of abode after seven years of residence.

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