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Carr-Robertson assurance of 1964 does make provision for

loan advances in lieu of pensions should the new government

of the territory default. This assurance does not amount to

a formal commitment to underwrite HMOCS pensions, but it has

been understood by OSPA and by HMG that this would happen if

there was a default. In 1985 Ministers agreed that if asked

we would reaffirm the assurance. It is not however our

policy to bring this to public attention and I have

therefore not included a reference to it in the reply.

7. Consular protection for the dependents of HMOCS members.

British nationals whose only nationality is British have the

right to consular access thoughout the world. However,

British nationals holding both British and Chinese

nationality after 1997 would not be entitled to British

consular protection in the HKSAR after 1997. The Chinese do

not recognise dual nationality, and we cannot yet say whether they will consider British citizens of Hong Kong Chinese origin to be Chinese nationals, British nationals, or, if an exception were to be made to the mono-nationality principle of Chinese nationality law, as dual nationals.

8.

On processing of applications under the BNA, we can inform Mr Glover that, as an exceptional measure, the Home Office have agreed to process out of turn any applications from spouses of British expatriates which the Hong Kong Government consider deserve special priority.

9.

Since our reply to the Superintendents' Association cannot be more substantive on the compensation and sterling safeguards issues, a departmental reply is probably best.

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