Amendment).

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Austrialia and

Canada:

Japan:

Have welcomed our efforts to encourage key

people to remain in Hong Kong. Although

their worldwide immigration policy does not

permit specific schemes for Hong Kong alone, some flexibility already exists in their rules from which we hope Hong Kong residence

can benefit. Canada has also been

particularly supportive in looking for ways of bolstering Hong Kong's international

position.

Although Japan has been unable to help over

passports, has been helpful in other ways, such as encouraging continued investment in

the territory.

Chinese attitude for passports/civil service

B 7. A summary of Chinese statements on our nationality

package and a background note on the Chinese attitude are

attached.

C

D

Section 4(5) of the British Nationality Act

8. Section 4(5) was introduced into the 1981 Act in

response to representations from Hong Kong. It is a discretionary provision which allows the Home Secretary to register as a British citizen a BDTC who, inter alia, is or

has been in Crown service under the Government of a

dependent territory. The then Home Secretary made clear at

the time that Section 4 (5) was intended to be used in

exceptional circumstances only. To date the Home Secretary

has received 540 applications and granted 11.

9.

During the Second Reading debate on 19 April

Mr Ivor Stanbrook asked the Home Secretary whether

Section 4 (5) had now been superseded.

Mr Lloyd clarified

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