TNAG-2378-FCO40-3457-Hong-Kong-nationality-British-Nationality-(Hong-Kong)-Act-19-1991 — Page 141

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1.

Mr Heap's Telno 405 demonstrates a thoughtful and serious approach to the issues of definition that are arising in his Advisory Group. Any consistent definition by what is meant by a close connection with the UK is bound to throw up some points for awkward decision, particularly when the definition has had to be somewhat diluted in order to cater not simply for facts but for political perceptions in Hong Kong and elswhere.

2.

The

Mr Fifoot has remarked separately on how important it is for the Advisory Group to act in a responsible fashion. fact that we plan to publish a first, pretty comprehensive list of companies which qualify early in the New Year will give others a good two months in which to ask for their own situation to be considered before the deadline for applications in the Spring. Ministers will have another opportunity to look more formally at the list that has emerged before names are released. Meanwhile, I too endorse the approach taken by the Group as described by Mr Heap.

3.

I am particularly pleased that the Group should have decided to write to the Chairmen of some of the more difficult groups (paragraph 4 of tur) in order to clarify the facts. It would be interesting to see how they reply, as, like Mr McLaren, I am rather uneasy about classifying, for exmaple, the empire of Li Ka Shing as British. As Mr Heap points out, we have a somewhat strange situation in which the Mass Transit Railway and the Kowloon-Canton Railway Corporation, despite their very heavy purchases from the UK and considerable British management, are perceived in Hong Kong to be totally local undertakings; whereas Hutchinson and Wharf, which also buy heavily from the UK and have some British management but which are not perceived locally to be British, may be thought to come within our admittedly broad definition. If the Minister has a view on this point, it would be helpful to give Mr Heap a steer. But we shall have another opportunity to look at the issue once the Group produces its consolidated list. I suggest that, at that time, we shall want to clear with the Governor whether he is likely to contest our advice before we put it forward formally.

21 December 1990

Cc:

Mr McLaren

Adus.

R A Burns

Mr Fifoot, Legal Advisers Mr Paul, HKD

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