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1.3 The UK Memorandum declares that:
"All persons who on 30 June 1997 are, by virtue of a connection with Hong, British Dependent Territories citizens (BDTC's) under the law in force in the United Kingdom will cease to be BDTC's with effect from 1st July 1997, but will be eligible to retain an appropriate status which, without conferring the right of abode in the United Kingdom, will entitle them to continue to use passports issued by the Government of the United Kingdom".
1.4
The Chinese Memorandum provides that:
"Under the nationality law of the Peoples Republic of China, all Hong Kong Chinese compatriots, whether they are holders. of the "British Dependent Territories citizens passport" or not, are Chinese nationals".
The Memorandum also provides that the Peoples Republic of China will, with effect from 1 July 1997, permit Chinese nationals in HK "who were previously called "British Dependent Territories citizens"" to use travel documents issued by HMG for the purpose of travelling to other states and regions.
1.5 At present there are believed to be 3.25 million HK BDTC's in HK. A substantial part of the remaining 2.4 million are now, or would be by 1997, entitled to take up BDTC status. However, the status of BDTC confers no right of abode in the United Kingdom. Since the events in Peking last June there has been pressure in HK for assurances to be given to HK BDTC's that, as a last resort, they could live in the UK. It is said that such an assurance would give confidence to key personnel in both the public and private sectors to remain in HK up to and beyond 1997. There is concern that, without such an assurance, the emigration of HK BDTC's will continue at its current high level (45,000
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