SECRET
1.'
I do not think that it is necensury to change Mr Davies's draft as Mr Spendlove suggests we might wish. to do. The circumstances of the Chinese in Hong Kong and Malaysia are very different and what we are concerned with in the case of Hong Kong is, in the short term the continuing credibility of the British link as expressed in nationality terms and the maintenance of the potential Chinese link in the long term. Whatever the Chinese say, those born in Hong Kong are citizens of the UK and Colonies and their status can not be changed until UK law is changed! Depending on which side the non-UK citizens in HK think their bread will be buttered in the future following a Chinese pronouncement on nationality we can expect to see an acceleration in or a diminution of the rate at which applications for registration or naturalization are received in the Colony. It is unlikely at this stage that the effect of a Chinese pronouncement would be an increased demand to enter the UK for settlement.
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In my
2. The danger of course is, as Mr Spendlove points out, that at some time in the future we shall be forced to recognize a continuing responsibility for the 50% or more of the inhabitants of Hong Kong who are UK nationals at a time when we have no means of exercising that responsi- bility short of admitting them to this country for settle- ment. But this is not a question that can be pursued in the context of what China is likely to say now. opinion however it is becoming increasingly obvious that Hong Kong belongers who at present are UK nationals ought soon to be segregated in nationality terms (citizens of Hong Kong) so that they form a pre-determined group who can when the time comes, in crude terms, either be handed over to the CPR by agreement, or in the absence of agreement, just abandoned.
$2
J S Dixon
(Nationality & Treaty Department)
22 April 1974
SECRET
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