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acquire BDTC status through a connection with Gibraltar. But on 1 July 1997, little more than five years from now, Hong Kong BDTCs will no longer have that status; they will be either BN(0)s or Chinese nationals or both and they will then be free to apply for Gibraltar BDTC status.

5. Since the Home Office wrote their letter, the deadline for registration under the UK scheme has come and gone. I am not sure but I seem to recall that the 50,000 limit was oversubscribed by several thousand. If this was the case there are quite a number of people who were no doubt disappointed not to have been able to acquire British Citizenship. Wealth would be a prime criterion but it is that pool which Gibraltar would presumably hope to tap.

6. I agree that Gibraltar's proposal has the potential to breach the 50,000 limit but not until after 30 June 1997 (by which time IMG's policy towards Hong Kong emigration may have changed anyway) and not by much - only 200 heads of families as opposed to the 50,000 heads of families provided for in the UK scheme; and Gibraltar's scheme like the UK's is designed to keep people in Hong Kong thus adding to the stability of the territory in the run up to 1997.

7. I should be grateful if Gibraltar's idea could be looked at again.

Youn Stike

M T Hill

Assistant to the Deputy Governor

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