TNAG-2183-FCO40-3120-Hong-Kong-nationality-international-support-1990 — Page 119

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5. People who simply hold a permit of residence in

Gibraltar would not enjoy the same freedom of movement

throughout the EEC or automatic right of abode in the UK

that Gibraltar BDTCs do. (Hong Kong beneficiaries of the

French laissez-passer, or the German right of residence would be in the same, inferior position, compared to full

passport holders.) Mr Bossano has expressed interest in the

discretionary powers given to the Secretary of State under

Schedule 1 to the BNA 1981 to vary the requirements for

naturalisation. He clearly has it mind to grant instant

BDTC status to Hong Kong people in exchange for investment.

While it is the case that the Secretary of State's powers are devolved to the Governor of a dependent territory in the

case of naturalisation as a BDTC, the Home Secretary has

already made clear that in exercising his own discretion

under the Act he would do so only on a case by case basis and not in respect of groups of people. He would clearly

expect the Governor of Gibraltar to exercise his devolved

powers in the same way.

6. Subject to confirmation by Gibraltar that they can offer right of residence without requiring its recipient actually to take up residence, there is a possibility that Hong Kong people may obtain a right of resdience in

Gibraltar, but unless they exercise it they cannot, unless

the Governor varies the conditions, obtain a status as a

Gibraltar BDTC and it is only if they have that status that

they can register as British Citizens.

7.

However, when we informed the Home Office of the

proposal, they expressed some disquiet. We are now sending

them the papers in order that they can consult the Home

Secretary. Subject to his views we may need to amend the line to take in the attached briefing which we are proposing

to supply to SED for inclusion in the briefing for

Mr Garel-Jones' visit.

POPAFV/3

CONFIDENTIAL