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(E) THE BLDC HAS NOT (YET) INCLUDED ANY REQUIREMENT THAT CIVIL SERVANTS IN THE SARG SHOULD BE COVERED BY ARTICLE 12 OF THE CNL (ALTHOUGH THIS QUESTION MAY BE REFERRED TO THE NPC): AND

(F) THE BLDC HAS NOT (YET) INCLUDED A NEW NATIONALITY OR RIGHT OF ABODE REQUIREMENT FOR LEGCO MEMBERS.

WAY FORWARD

5. OUR IMMEDIATE OBJECTIVE SHOULD OF COURSE BE TO LIMIT ANY DAMAGE DONE BY CHINESE STATEMENTS TO PERCEPTIONS OF THE VALUE OF THE NATIONALITY SCHEME BOTH HERE AND IN UK. WE WILL HOWEVER, AT SOME STAGE, NEED TO CONSIDER A POSSIBLE WAY FORWARD SHOULD THE CHINESE MAINTAIN THEIR PRESENT STANCE. SEEN FROM HERE IT MIGHT BE DESIRABLE TO SEEK EARLY DISCUSSIONS WITH THE CHINESE IN ORDER TO IMPRESS UPON THEM, ONCE AGAIN, THE IMPORTANCE OF OUR PROVIDING KEY MEMBERS OF THE HONG KONG COMMUNITY WITH THE CONFIDENCE TO REMAIN IN HONG KONG UP TO AND BEYOND 1997: AND TO TRY, IF POSSIBLE, TO ALLAY SOME OF THEIR CONCERNS ON THE QUESTION OF ALLEGIANCE OF CIVIL SERVANTS. SUCH DISCUSSIONS MIGHT TAKE PLACE EITHER THROUGH NORMAL DIPLOMATIC CHANNELS, THROUGH JLG OFFICES IN HONG KONG, OR BOTH

6. POINTS TO MAKE MIGHT INCLUDE:

(A) THAT WE FULLY ACCEPT THAT THE CNL WILL BE APPLIED TO THE HKSAR AFTER 1997, IT PRECLUDES DUAL NATIONALITY AND SPECIFIES THE CIRCUMSTANCES UNDER WHICH AN INDIVIDUAL MAY LOSE OR RENOUNCE

CHINESE NATIONALITY:

(B) THAT NEVERTHELESS, HITHERTO THE CHINESE GOVERNMENT HAS ALWAYS RECOGNISED THE STATUS OF ETHNIC CHINESE WITH FULL BRITISH CITIZENSHIP (INCLUDING THEIR RIGHT TO TRAVEL ON A BRITISH PASSPORT IN CHINA, AND THEIR RIGHT TO CONSULAR PROTECTION IN THE PRC) AND WE THEREFORE LOOK TO THE CHINESE GOVERNMENT TO ACCORD HONG KONG PEOPLE WHO ACQUIRE BRITISH CITIZENSHIP UNDER THE NEW UK SCHEME FULL RECOGNITION AS BCS BOTH IN THE FUTURE SAR AND IN THE PRC:

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(C) IF THE CHINESE GOVERNMENT DECLINE TO RECOGNISE THEM AS BCS WHILST IN THE SAR, THE PURPOSE OF THE SCHEME TO RETAIN IN HONG KONG KEY PEOPLE IN THE PUBLIC AND PRIVATE SECTORS MAY BE UNDERMINED AND PROSPERITY AND STABILITY FURTHER JEOPARDISED (WE WOULD NOTE THAT, IN PRACTICE, IT WOULD BE EXTREMELY DIFFICULT FOR THE CHINESE AUTHORITIES TO DISTINGUISH IN FUTURE BETWEEN HONG KONG

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