E.R

Mr Yates

HONG KONG CITIZENSHIP SCHEME:

CC

Mr Langdon

Mr Moorey

Mr Morris Mr Walker (S3)

Mr Osborne

Mrs Kellas

Miss Davies

Mr Kinney

dar Holque fi.

Mr J Morris (FCO)

میم

Jolt

GOVERNOR'S ANNUAL REPORT

This note addresses the content of the annual report which, under Section 4 of the British

Nationality (Hong Kong) Act 1990, is required to be submitted to the Secretary of State

by the Governor on the discharge of his functions under the Act.

By way of background, Section 4 was introduced during Commons Report stage following

concern expressed during Standing Committee that, as the Governor was not directly

accountable to Parliament, Parliament would not be able to oversee the implementation

and the effectiveness of the selection scheme which it had approved. The annual report

would provide a means of keeping Parliament informed and could be taken into account

in considering any proposal under Schedule 1 to the Act to amend the selection scheme

at a later date.

During my recent visit to Hong Kong, I was sounded out by HKG about the timing of the

annual report and on the sort of things which the Governor might include. On timing, you will know that Miss Davies has advised that the first report should be submitted on or

before 1 December 1991, which is one year after the coming into force of the Order in Council setting out the selection scheme and the functions to be carried out by the

Governor. As to content, I discussed with HKG some preliminary ideas which are set out

below. I promised to give more detailed guidance following discussion here.

Ministers have undertaken that the reports will be available to Parliament. We should assume that there will be a fair amount of Parliamentary and press interest, particularly if total applications for the first tranche of the scheme fall short of the number of places available, and that the first report, at least, will be debated. Comprehensive statistical data on applicants and recipients of citizenship will be expected. In addition, as exchanges

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