Line to Take
(a)
(b)
We have seen reports issuing from one of the special groups of the Basic Law Drafting Committee. We have heard nothing officially and await fuller reports from Hong Kong.
We shall need to establish what was said and with what authority.
On the two principal points:
Consular protection
It is the right of the holder of a British passport conferring right of abode in UK to have British consular protection all over the world, including Hong Kong.
The position of those who do not hold full British passports will be different. Under the Chinese Memorandum attached to the Joint Declaration it stipulates that holders of BDTC passports are Chinese nationals.
Restrictions on the right of top officials, EXco and LegCo members to hold foreign passports (ie "to live abroad" language)
the present reports are obscure
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AP
Second paragraph of Section IV Annex 1 of the Joint Declaration preserves the right of British and foreign nationals resident in Hong Kong to serve as public servants at all levels in the HKSAR subject to certain specified exceptions.
The only relevant stipulation in the Joint Declaration is that the government and legislature should be composed of local inhabitants. Any further restriction would be new and
unwelcome.
It is very important that in the interests of continuity there is no obstacle to members of the last Hong Kong LegCo continuing to serve in the first Hong Kong SAR legislature.