CONFIDENTIAL

The implications of this for beneficiaries under the scheme who

wished to renounce:

10.

a) the Chinese would have to agree to set up an equivalent bureau under HKSAR to receive applications, (or applicants would have to make their applications in Guangdong); and

b) the Chinese would have to agree that recipients under the

scheme had "legitimate reasons" for renunciation.

Consular protection for beneficiaries under the scheme

ultimately depends, therefore, on the attitude of the Chinese

authorities; not merely on the usual practical question as to

whether they would permit consular access in a given case, but

whether we would have legal grounds seek to exercise consular

protection. This has clear implications for the public line that we

can take on consular protection. We need to give a clear signal

that HMG are fully resolved to do all they can to protect the

interests of British citizens within the parameters of

international law and practice.

ARP

A R Paul

CONFIDENTIAL

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