DSR 11C
SECRET
-22-
permission to settle in the United Kingdom. There are
at least an additional 2 million with a legal right
of abode in Hong Kong, many of whom will have
children who are CBDTs by birth.
They would also
make a political and moral case for similar con-
cessions. Without such concessions, many would
try to move to neighbouring territories, Like
and HMG would be under strong
pressure to resettle
them.
b) Administration of Hong Kong: During the transitional
period, the problems in paragraph 22(e) would arise.
The continued loyalty of senior members of the Hong
Kong Government would be vital. The Civil Service
and Police, both local and expatriate, would face ay
problem of divided loyalties. Many would make
demands on HMG for special treatment; indeed, this
has already been raised. Their continued loyalty
and presence could not be relied on. Morale and
1.1
recruitment would suffer. When the new system took
effect, the maintenance of confidence would depend
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