TNAG-1748-FCO40-2467-Visit-by-Sir-Geoffrey-Howe--Secretary-of-State-for-Foreign-a-1988 — Page 119

CONFIDENTIAL

BRITISH CITIZENSHIP FOR HONG KONG CHINESE

15.

There have recently been expressions of concern voiced by

British businessmen in Hong Kong about the difficulties of retaining skilled Hong Kong Chinese managers. They suggested offering British citizenship as an inducement to key personnel to stay in Hong

Kong. Earlier, businessmen had suggested to us that British

passports be granted to Hong Kong Chinese prepared to invest in the

UK.

16. The concern about the difficulty of retaining skilled

professionals is a valid one. It is a concern which we and the Hong

Kong Government share. At present the outflow of talent has not

reached anything like crisis proportions, but the situation is being monitored carefully.

17.

The offer of British citizenship to such people would certainly help to reduce the outflow. But the political arguments against granting British citizenship to managers or entrepreneurs are strong. Ministers concluded when they considered the issue that

we would be sowing the seeds of divisiveness between those who would

be seen as having been "bribed" with or having "bought" a British

passport and those who had no hope of being so fortunate. The

conclusion would be drawn that an individual's wealth or position

(particularly if that position affected UK commercial interests) was

of more importance than his personal qualities or any moral

obligation on the part of HMG to the Hong Kong people. As the late

Governor made clear in 1986, in the light of the decision not to

grant British citizenship to the ethnic minorities, arrangements for businessmen or investors would cause a major outcry in Hong Kong.

We believe the present Governor would entirely endorse this

judgement.

18. There are also constraints placed on HMG by the requirements

of the British Nationality Act 1981 in relation to the acquisition of British citizenship. The Home Secretary takes the view that

British citizenship cannot be offered as a reward, honour or inducement.

CONFIDENTIAL