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chose with close social and economic ties with Hong Kong, to
consider taking similar measures. The results so far have been
mixed but it is too early to give a considered assessment. The
Chinese have chosen publicly to criticise this as an attempt on our
part to "internationalise" what they consider should be solely a
bilateral matter. We are taking the line with them that Hong Kong
is an international centre, with huge international investment.
major trading partners have a strong and legitimate interest in Hong
Kong's continued stability and prosperity.
Its
Consular Protection
7. The Chinese have said publicly that those covered by the scheme
would not be entitled to British counsular protection in Hong Kong
since China would still regard them as Chinese.
8. We are very unlikely to reach agreement with the Chinese either on a legal or practical basis. The most we can hope for is to agree
to differ with minimal damage to confidence in Hong Kong. We cannot
in practice guarantee consular protection for beneficiaries of our
scheme people in the SAR or China (cf the position of Hong Kong
residents presently who travel in China). Howver, in time we may
find that in practice the Chinese will take a more flexible approach
than their recent statements indicate. The key seems to lie in
renunciation of Chinese nationality (without the requirement to have
lived abroad). This would enable the Chinese authorities to
recognise the beneficiaries as foreign nationals and thus entitled
to consular protection. The Chinese have indicated reluctance to
contemplate mass renunciations but there may be scope to explore
this option with them.
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