5.

CONFIDENTIAL

Because it reflects the unique circumstances of Hong Kong and the Agreement, it would be wrong to regard it as a precedent

which could be applied to other British nationals. Other British

nationals may choose whether or not to hold a passport: in effect,

BN(0)s do not have that choice, because the terms of the

Memorandum preclude it.

6.

Furthermore, there is a clear distinction between holding

and being in physical possession of a passport. For example,

a person who has lost his passport is regarded as a passport

holder, even though it is not actually in his possession. The

actual issue, renewal and replacement of BN(0) passports will be

effected under the prerogative. Giving an entitlement to hold a

passport would not prevent the competent authorities from withholding

its physical possession from an individual whom for legitimate

reasons those authorities wished to prevent from travelling.

Scope for amendment

7.

Highly undesirable. It might be possible to omit the

reference to BN (0) passports in Article 4, but this would be

contrary to Hong Kong's strong wishes, and might well create

uncertainties and dismay in Hong Kong. It would be highly

undesirable to amend the draft Order in such a way as to give the

impression:

a)

that registration as a BN(0) was

sufficient, and that the holding of a BN (0)

passport was unnecessary or

b)

that acquisition of a BN (0) passport was

a matter of official discretion.

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