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The Chinese Response
10. A further matter, not covered by the Home Office submission is the likely Chinese reaction. It is clear from their response to the
20 December statement that they are extremely sensitive to the
prospect of the grant of British citizenship to what they regard as a significant sector of the population. Their concerns appear to
be: the allegiance of beneficiaries after 1997 (they perceive the
scheme as an attempt to extend British influence); conflict with the
Chinese nationality law which does not recognise dual nationality, and allows renunciation of Chinese nationality only through residence abroad or special application (the Chinese have made it
clear they would not countenance queues of applicants in Hong Kong);
and the prospect of people they regard as Chinese seeking British
consular protection. They have already taken what they refer to as
"corresponding measures". They have imposed a foreign nationality
restriction on members of LegCo (20% of the total). They have
slightly extended the posts in Government which can only be filled
by Chinese nationals, and have further excluded "holders of right of abode abroad" from all these posts.
11.
Discussions which the Bill Unit had with HKG in this context
focussed on means to maximise flexibility for the recipients (para 4
above). But Ministers will also wish to be aware of how the Chinese
are likely to interpret the scheme. This scheme, as currently designed will probably result in virtually the entire officer class
of the disciplined services, as well as all senior staff in the civil service holding British passports. When this becomes public
knowledge we may expect the Chinese to feel obliged to take further
corresponding measures. Although the Joint Declaration makes clear
that the HKSAR may employ British and other foreign nationals, the
Chinese may argue that our package is such a departure from the
status quo in 1984 that it amounts to a breach of the spirit of the
JD. They may then decide further to amend the Basic Law to extend the prohibition in JD 74 against foreign nationals holding Secretary level posts, to other, lower ranks. A worst case scenario might see them sacking all officers holding British passports in the
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