TNAG-1085-FCO40-1335-Implications-for-Hong-Kong-of-changes-in-the-British-nationa-1981 — Page 173

CODE

18-77

Mr Towner

NTD

CONFIDENTIAL

Reference.

HKK 340/

RELIVED IN PRVEY M. $1 0 4 SEP 1981

DESK OFAN

349

NATIONALITY BILL: CBDT

INDEX

342

1. Please refer to your minute of 12 August.

2.

it ill

Pån 4/7

Your paragraph 5 is generally a fair synopsis. I believe that the arguments in relation to Hong Kong are strongly in favour of HMG opposing the Gibraltar and Falkland Islands amendments. Indeed this is the official Hong Kong line. The Governor recently confirmed it when he saw Mr Ridley; he considered that the best outcome would be a reversal of the Gibraltar amendment. However, if the Gibraltar amendment is maintained despite HMG's opposition, then there is no doubt that Hong Kong would regard the situation as a new one and the Governor would almost certainly have to support the Unofficial Members of the Executive and Legislative Councils in seeking change in nomenclature in which some emphasis on the 'Britishness' of Hong Kong would be a main feature. However, there is no question of their expecting freedom of entry to the UK.

3. We agreed with TRED that it was more appropriate for us than them to comment on the trade implications. Those in Hong Kong most concerned with the Nationality issue are the Unofficial Members, who are prominent Hong Kong personalities. Besides having an influence on local opinion they also have a voice in major contracts which have a Hong Kong Government side to them i.e. those where Executive Council approval of financial arrangements etc may be required e.g. Mass Transit Railway, Kowloon-Canton Railway, new airport.

4. There is already a feeling in Hong Kong that Hong Kong affords Britain preferential treatment e.g. the Castle Peak Power Station project where GEC have been awarded multi-million pound orders. The Governor has been striving to preserve the British trade position. If the Gibraltar amendment goes through and HMG is unsympathetic to Hong Kong's desire for a change in nomenclature then in our view there is a strong possibility of adverse repercussions on Britain's trade with Hong Kong.

3 September 1981

H McQuade

Hong Kong and General Department

cc: TRED

CONFIDENTIAL