TNAG-2360-FCO40-3431-Visit-by-John-Major--UK-Prime-Minister--to-Hong-Kong--Septem-1991 — Page 23

CONFIDENTIAL

Have been personally involved: several face-to-face and telephone discussions with President Bush.

I am very

pleased for Hong Kong that MFN now likely to be renewed.

But this is not the end of the road. Need to

continue to work together, and with China, in the months

and years ahead.

Nationality

I enclose a background paper on the British

Nationality (Hong Kong) Act 1990 (Annex F). The first

tranche of the scheme (about 43,000 places of the total

50,000 principal beneficiaries) was 50% over-subscribed.

Applications are now being processed, and the first few

certificates of registration as British citizens have

already been issued. If questioned about this, the Prime Minister might say:

-

Understand processing of first tranche going

smoothly. Places in under-subscribed categories will be

re-allocated to second tranche (timing not yet set, but

nearer 1997);

-

Believe scheme has helped restore confidence in the

public and private sectors. Also had catalyst effect in

encouraging other countries to come up with similar

schemes;

-

(Defensive) A scheme for all Hong Kong people would not have been feasible: could not expect future Governments to accept such an immigration commitment.

CONFIDENTIAL