defining which British Nationals should become "nationals of the Community" after establishment of the European Union, ie

British Citizens and BDTC's who gained their status through a

connection with Gibraltar and not Hong Kong BDTCs or BNos.

Our case would be stronger if the EFC were to be in force, because "community nationals" are not so clearly defined.

4. The Commission will want to establish a CVL once

Maastricht is in force. But this may be delayed by the arguments over the structure of the "K4 Committee". (This is

the Co-ordinating Committee of senior officials set up under Article K4, Title VI of Maastricht, whose purpose is to make

recommendations in various areas including visas. We want a

tightly-drawn and lean Committee; the Germans want wider representation and a broader focus.) Until 1996, additions to the CVL will be decided by unanimity; thereafter QMV will apply. It is likely that Schengen countries will want their

CSVL to become the basis of the CVL, although the two are not

synonymous. Moreover, we would be obliged under Maastricht to implement a regime on all the categories included on it (ie including in theory BDOS and BDTCs). However, all member states would still operate their own national visa policy and would not be obliged to admit individuals who had visas issued

by other Member States.

5.

Our options appear to be:

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a) to go with the crowd and implement a visa regime on those

British Nationals who might figure on a CVL. The main argument for this is compliance with our EC obligations and that the requirement to hold a visa does not prohibit travel;

b) to try to persuade our partners to accept the legal arguments against putting BDTCs and BNOS on the CVL. were to accept this, all well and good,

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