LY NOW!

4. In your letter you suggested that the Gibraltar authorities might establish a special form of non-resident settled status. Might this be the way forward, and if so, how could it be achieved? Clearly such status would need to carry a bar to the achievement of BDTC status in order to prevent the automatic acquisition of citizenship under section 5 of the 1981 Act.

5.

Incidentally, I believe that it is possible to naturalise as a GBDTC as one would achieve citizenship through naturalisation in the UK. I presume that, (provided they

provided the iHong Kong investors chose to move to Gibraltar then, they fulfilled the requirements of the Act, and were being considered on a case by case basis rather than as a class, the Governor would be obliged to register them as GBDTCS and there would be nothing we could do to discourage this?

Planning to

6. We are separately (consulting Gibraltar Government officials on their ideas as to now an assurance scheme could be technically achieved. It would be useful to have your initial views.

CC:

Mrs Grimsey, HKBU, QAG

bcc:

J M Morris

Hong Kong Department

APS/Mr Garel-Jones

Mr Madden, SED

Mr Fifoot, Legal Advisers

Mr Chamberlain, Legal Advisers

CONFIDENTIAL

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