-

There are no financial risks to HMG in a short fall.

Section 5 of the British Nationality (Hong Kong) Act

provides for the Home Secretary to recover from the Governor of Hong Kong any expenses incurred by Home Office officials

in connection with the scheme.

HMG/HKG SHOULD MAKE EXTRA EFFORTS TO ENCOURAGE PEOPLE TO

APPLY

- The virtue of the scheme is that the option of an insurance policy has been available. It is entirely up to

Hong Kong people themselves whether they wish to take it

up. HMG is not in the business of trawling.

Any places not taken up in the first tranche will be

available for the second tranche closer to 1997.

MTHATO/3

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