Mr P Monk MVD

COVERING CONFIDENTIAL

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BN (0) PASSPORTS FOR HONG KONG:

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1. You will have seen a copy of Hong Kong's telno 9372 of 31 October informing us that forty percent of their passport fee

They covers their full administrative and production costs. charge HK $200 (roughly £20) for their standard passports at the moment so this indicates that their costs amount to about £8. If this figure is related to a BN (O) passport at a cost of £15, their 'profit' would be £7.

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2. As you know from our meeting with Hong Kong and Finance Departments earlier this month, it will be difficult to persuade the Treasury to accept the situation whereby Hong Kong retain this balance rather than remit it to the consolidated fund, like consular receipts from elsewhere in the world, w.e.f. 1.4.86. we tell Hong Kong that they may point to the arrangement whereby ́ they perform our visa, entry certificate and other services

It is important for without charging HMG but retaining the receipts. us to know on what basis the Hong Kong Government undertook to perform such functions for us on those terms as it constitutes a precedent which might be quoted by either side in this case. Would you please give us what details you have as soon as possible?

xx

HD Marcelin

31 October 1985

Nationality & Treaty Department (CL511 213 4005)

Copies to: Mr Hill, Hong Kong Dept Mr Minter, Finance Dept Miss Kaye, Consular Dept

HAK 040128

NOV 1985

CODE 18-77 AWO Ltd.

COVERING CONFIDENTIAL

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