CONFIDENTIAL

registration as BDTCS.

This would enable HKID to ensure the

processing of all applications for BN (0) status in good time

before the final 30 June 1997 deadline.

8.

This would also be the least problematic solution from the political perspective. Some Hong Kongers might object

to the restriction of their entitlement which otherwise

would extend to 30 June 1997, and may seek judicial review.

But we believe this is defensible, and is probably less

damaging a prospect than seeking transitional powers to

permit registration of BN (0)s after 1 July 1997 (as it were,

the alternative strategy); which would bring us into

conflict with the Chinese on the grounds that it would

breach the UK Memorandum, (which states that [BN (0)]

passports must be obtained before 1 July 1997).

9. A reply to HK Telno 2016 is greatly overdue. It has

taken until now to persuade reluctant Home Office officials

and their Legal Advisers that the existing legislation is so flawed that on legal grounds alone (as well as on policy grounds) it requires amendment. They now so agree. As to timing: we do not need to rush into legislation, it is essential only that the amendment permitting the required cut-off dates is in place before those proposed dates take

effect. But in any event we owe Hong Kong the courtesy of

an early reply, to permit them to plan their advertising campaign, and to begin the consultation process on what form the legislation should take, with a view to a further

submission in due course.

Тоий

J C Morris

JM3AAL/4

A great deal of careful work has gone into this here and in the home office. I think the telegram

sets out the proposals clearly.

CONFIDENTIAL

Schalts

Роллы гора

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