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075733 MDHOAN 5918

the Spanish anticipate that BDTCs and BN (0)s will be the subject of similar measures by other Schengen states?

Defensive line to take if Spanish raise returnability

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BDTCs and BN (0)s have right of abode in Hong Kong, and will continue to have right of abode in the SAR after 1997. FOR HONG KONG

6.

We shall address the points which you raise in your telegram and expect to be able to answer some of them by 23010OZ. The broader question of how best to protect the interests of British nationals in Hong Kong in the face of restrictive visa regimes raises complicated issues which will require further study here and with other Government Departments.

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ECD (I)

LEGAL ADVISERS

MR GREENSTOCK

MR ALSTON

MR HUM

MR JAY

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