TNAG-1081-FCO40-1331-Implications-for-Hong-Kong-of-changes-in-the-British-nationa-1981 — Page 194

Mr Donald

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HONG KONG: NEW NATIONALITY LEGISLATION: DISCUSSIONS WITH HOME

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1.

EGISTRY nction Takep

FFICE

Hong Kong's consistent opposition to Nationality proposals since publication of Green Paper in 1977. Repeated representations through Governor andpersonally by Unofficials to Ministers,

2,. Hong Kong has some concerns in common with other Dependent Territories but some unique. Of total Dependent Territories population of 5,444,671, Hong Kong has over 5,000,000. Advanced economy. Relatively sophisticated society. In normal circumstances would be independent.

3.

Relations with China at heart of problem. Chinese current good will to Hong Kong, which it needs. But doubts about legal position make confidence fragile,

4.

Breakdown in confidence could lead to flight of capital and major problems for HMG. Foremost among these would be immigration pressures from British passport-holders and others in the Territory.

5.

6.

Already a number of irritants between HMG and Hong Kong:

a) Students' fees;

b) Vietnamese Refugees;

c) Higher Hong Kong contribution to defence;

d) Textiles policies; renegotiation of MFA.

Therefore in all our interests to maintain confidence. Understand Home Office's concerns but if we do not reassure Hong Kong now we may get a premature and much worse demand for admissions to UK than by judicious amendments now.

7.

Governor has stressed psychological impact of Bill in Hong Kong. Therefore importance of achieving reassurance through the Bill.

8.

Continuing general concern in Hong Kong on deprivation of CUKC. Many realise this is impracticable but adds weight to their demands for some amendments.

9.

Petition received from senior locally-engaged Administrative Officers. Our reply to them must take account of outcome of these discussions.

10.

Lord Carrington's personal interest and request for Home Secretary's help.

R D Clift

23 February 1981

Hong Kong and General Department

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