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not (not) to make special legislative provision in either case.

Mr Wardle suggests that in setting out the various arguments Mr Goodlad had implied support for the view expressed in debate in the House of Lords on 15 July that the assurances made by this and previous Governments to the ethnic minorities had not

stood the test of time. Mr Wardle maintains in his letter that

this was not the case.

Argument

5. We understand that the Governor intends to make further

representations to Home Office Ministers concentrating on British citizenship for the war widows a small group of elderly ladies, particularly as his legal advisers believe that it should be possible for the Home Secretary to exercise greater discretion. Given Hong Kong's status as a Dependent Territory and the Secretary of State's constitutional

responsibility to Parliament for Hong Kong there are bound to be occasions when Foreign Office Ministers have to speak up for

the Hong Kong Government's views in confidential discussion

with colleagues. It is unfortunate that this seems to be being interpreted by the Home Office as undermining existing Government policy.

6. The Home Office's decision not to budge on making

additional arrangements for the ethnic minorities (and for war

widows) was disappointing, but much as we had expected. As

Mr Wardle notes, the decision on ethnic minorities was

announced in a Written Answer to a Question from Graham Allen

on 26 July. Mr Wardle also addressed along predictable lines queries raised with Mr Goodlad by Mr Canavan (at the FAC session on 14 July). Mr Goodlad can now pass on to the FAC Mr

Wardle's observations.

We do not think that the time has yet come to draw a line

under our representations. The Governor feels strongly that

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