29 JAN '93 15:30 B4 LINO 051 255 1160
From: Mr C J Kelly
B4 Division
India Buildings
GTN 4126-309
January 1993
Mr Roberts
Private Office
DRAFT
CC
Mr Griffith
Mr Rawsthorne
Mr Walmsley
P.2/4
Mr Morris
Hong Kong Dept. FCO Mr Carter
Southern European
Dept. FCO
ACQUISITION OF BRITISH NATIONALITY IN GIBRALTAR BY HONG KONG RESIDENTS
You telephoned a few days ago to tell me that Lord Merrivale had asked Lord Ferrers about rumours that Gibraltar had agreed to grant residents of Hong Kong some form of British nationality. You asked for advice and a draft reply.
2., Lord Merrivale's information is inaccurate. The situation is as
follows.
3. Gibraltar have been exploring privately with the Foreign Office and Home Office since early 1990 the possibility of attracting investment from wealthy Hong Kong residents in return fora)the grant of resident status in Gibraltar and British nationality, without the people concerned having to leave Hong Kong and reside in Gibraltar. The concept is based upon the British nationality scheme devised for Hong Kong in 1990, where British citizenship is granted without the need for the applicants to fulfil the normal UK residence requirements.
4. Both we and FCO have explained the difficulties with this, which stem from the provisions of the British Nationality Act 1981 (the British Nationality (Hong Kong) Act 1990 does not apply to Gibraltar). Essentially these are that any potential investors who are already British Dependent Territory citizens (BDTCS) through a
a connection with Hong Kong (and more than half the population of Hong Kong hold this status) cannot apply to become BDTCS through a connection with Gibraltar. They cannot apply for BDTC status if they already have it. Secondly, anybody wishing to become a Gibraltar BDTC would need to fulfil the residence requirements laid down in the 1981 Act. The grant of BDTC when there has been no residence in the territory would be unlawful and even when there has been some residence but significant absences these absences ought not to be waived unless the
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