CONFIDENTIAL

Joint Declaration specifies that BN (0) status will be

acquired "only if the hold ...such a ...passport issued

before 1 July 1997". The Hong Kong Government are however also proposing that the Home Secretary have discretion to register late applicants for BN (0) status, in the same way

as for BDTC status (para 6 above). This should lessen the

risk of a successful challenge.

9.

We need to seek clarification from Hong Kong as to how exactly they intend to operate the cut-off dates. There

could be an adverse reaction in Hong Kong if cut-off dates

were implemented too soon after the legislation came into

force as this would not give sufficient time for the first groups to register. Subject to satisfactory resolution of this issue we would need to proceed swiftly to prepare the

Order in Council. The Home Office would be responsible for

taking this through Parliament.

10.

Subject to Ministers' views, the Hong Kong Government

wish to put the scheme to ExCo on 14 July, and then to issue

a press statement explaining the scheme, and emphasising the benefits of applying early. They may well also have to reassure Hong Kong people about the international acceptability of BN (0) passports. There will then be a major publicity campaign once the Order has been passed, setting out the cut-off dates and urging those eligible to apply in good time. All this will be a major call on the manpower resources of HKG over the next five years.

RQ

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Vienett

PF Ricketts

JH4ABQ/4

CONFIDENTIAL

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