TNAG-1302-FCO40-1658-Visits-by-Richard-Luce--Minister-of-State-for-Foreign-and-Co-1984 — Page 13

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also significant. Its effect should be to ensure Hong Kong's

prosperity and he expected a new atmosphere of confidence in

Hong Kong and an expanding economy there. He hoped there would be an increased flow of investment from Japan. The agreement was now being put before the people of Hong Kong and their reactions would be assessed by independent monitors whose report would be made available to the British Parliament.

Parliament would debate the agreement in early December. He

personally expected strong support for it and could not con-

ceive of a vote against it. The agreement was not, of course, perfect. Nationality had been a particularly difficult and emotive issue, since it was recognised that many people in

Hong Kong would wish to maintain their connection with the UK

but, equally, most British parliamentarians agreed that the UK

could not cope with a huge and uncontrolled influx of Hong Kong

Chinese. The existing density of population in the UK made

this impossible. The British Government's hope and expectation was that the agreement would convince the people of Hong Kong

that they had no reason to leave. Continued support from Japan would help get this message across.

11.

Mr Matsunaga said that Japan had followed the negotiations

between the UK and China with considerable interest and concern

and greatly appreciated the efforts made by both sides to reach final agreement. Congratulations were certainly due for this successful conclusion. There remained, nevertheless, some points about which the Japanese government was unclear and

would welcome advice. First, the status of the Hong Kong people after 1997 was rather complex. Would those born before 1997

be entitled to a British passport or just some form of travel

document? Mr Luce replied that this was indeed a complicated

question. All British Dependent Territory Citizens would cease

to be so described on 1 July 1997, but would be eligible to

retain "an appropriate status" which, without conferring the

right of abode in the UK, would entitle them to continue to

use passports issued by the UK Government. This entitlement would not be passed on by descent. In essence, children born

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