Treasury Chambers

Parliament Street London SW1P 3AG

Telex 262405

RE Escritt, Esq. Finance Department

Foreign and Commonwealth Office

Old Admiralty Building

Spring Gardens

LONDON SW1A 2AF

1. CC Wymiarcalin},

HKD

2. Enter

Telephone Direct Line 01-2334296

Switchboard 01-233 3000

3. 14. Hodysen

th. Grant or

Your reference

Our reference

Date

24 September, 1985

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HONG KONG: ISSUE OF BRITISH NATIONAL (OVERSEAS) PASSPORTS

We spoke last week about your letter of 17 September and I am writing to confirm the conclusions reached. It might help if I briefly recap the position as I

understand it.

2. Currently, the Governor of Hong Kong issues passports in his own right. Passport blanks are purchased from the Home Office and the cost of these and the administrative costs of issuing the passports are covered by a fee. Under these arrangements the FCO has no financial involvement.

|| 3.

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1

Following agreement on Hong Kong's return to Communist China in 1996, Hong Kong citizens will be able to opt for British National (Overseas) status. It would be inappropriate for passports to be issued to this group under present arrangement. Under new arrangements the Governor would be empowered to issue passports to this group on behalf of the Foreign Secretary. The present administrative arrangements would continue whereby the Hong Kong government would purchase the blank passports and issue passports. A fee would be charged as determined by the Consular Fees Order. However from 1 April 1986 all consular fees etc (non-public expenditure) fall to be paid to the Treasury as CFERS. It is therefore proposed that the cost of purchase and administrative costs incurred by the Hong Kong government shall be

Since paid over to them and the remainder of the fee only surrendered as CFERs. the Consular Fees Regulations 1981 allows for official expenses to be defrayed this is quite in order.

A.

Our own view is that the proposed arrangement is both sensible and straight forward and we have no objections to you going ahead on that basis. Since the arrangements will be spelt out in a forthcoming White Paper Parliament will be informed. We would suggest that the Estimates and Appropriate Accounts also be noted.

5. It goes without saying that you will want to ensure that the level of fee set at least covers the full cost to the Hong Kong government, so that the FCO isn't financially penalised.

PS. We discursed the latest development and

Yours sincerely,

Mincerets

B NELSON

We agreed that the F Co should try to the amant of lee to be retained by them. On muted Het it was it acceptable that they should seep all the fee give the change in Evcs.

regotiate with the thing Kang goverment.

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