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CONFIDENTIAL

This status is being replaced by that of BN (O), created by the Hong Kong (British Nationality) Order 1986, and which will continue after 1997. The Hong Kong Government estimate that 3.4 million Hong Kong BDTCs will be potentially eligible for registration as BN (0)s but that so far only 0.3 million have obtained BN (O) passports. From experience

(of eg ID card issue and of the 1990 Nationality Act), Hong

Kong people tend to leave applications until the last

minute.

A

4.

The problem is how to encourage people to apply in good

time. The Hong Kong Government, we and the Home Office have

been developing proposals for cut-off dates and transitional

arrangements.

(a) BDTCS connected with Hong Kong

5.

A person cannot acquire BN (0) status without first qualifying as a BDTC. Under existing legislation, the

British Nationality Act 1981, suitably qualified Hong Kong

people may register or naturalize as BDTCs up to midnight on

30 June 1997. But if they do so just before 30 June 1997, there will be no time to process their applications and

issue them with passports before 30 June 1997. At present there is no power to register or naturalise after that date.

There is therefore a need to adopt cut-off dates and make

transitional provisions operating before 1 July 1997 so as to ensure all applications are processed in sufficient time to enable successful applicants to acquire BN (O) status if they wish.

The Hong Kong Act 1985 (Schedule, paragraph

2 (3)) appears to allow for the making of an Order in Council to impose cut-off dates for BDTC applications.

6.

There is a risk that potential applicants for BDTC status, who have not submitted their applications before the

cut-off date, might seek to challenge the vires of the new

JH4ABQ/2

CONFIDENTIAL

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