CONFIDENTIAL

Reasons For The Sharp Chinese Reaction

3.

Several factors combine to account for the severity of the

Chinese reaction:-

(a)

the Chinese had not expected that the package would

provide for full British citizenship.

They had

interpreted earlier British statements as indicating that the package would stop short of this;

(b) they have interpreted the package as a sign of distrust

towards them and lack of confidence in the prospects for

the SAR, adding to their sense of loss of face and

resentment over Hong Kong and Western reactions to the

crackdown last June;

(c)

(a)

they fear that the extension of British citizenship could undermine the allegiance of Hong Kong civil servants and

other important members of the community to the SAR and

Peking;

they also worry that the package might have only a temporary effect and lead to a sudden outflow of key people in the period immediately before the handover in

1997.

In the long run it may prove particularly difficult to dispel their anxieties described in (c) and (d).

Chinese Counter-Measures Already Adopted

4.

The main specific counter-measure already adopted by the Chinese has been an amendment to the Basic Law concerning

citizenship qualifications for certain posts. The February 1989 draft of the Basic Law specified the following posts as

reserved for Chinese citizens:

CONFIDENTIAL

Page 60Page 61

Share This Page