DSR 11C

current information, about two thirds of them would need

to do so for Hong Kong to maintain its existing level of

surplus revenue, but this would depend largely on what

happens to local costs in Hong Kong over the ten year

period.

4. There are a number of other services performed by the

Hong Kong Government on behalf of HMG. On one of these,

the issue of entry clearances, the Hong Kong Government

estimates that it has been in deficit for many years.

Over half of the entry clearances issued are in the form

of entry certificates for Commonwealth Citizens. Until

we introduced an entry certificate fee this year, the

Hong Kong Government received no revenue at all for this

service. Other services undertaken on our behalf include

those in support of British shipping calling at Hong Kong

and the provision of unofficial trade representatives in

18 cities overseas to cover functions some of which we'

should otherwise have to take on. In return our own

missions overseas perform consular work on behalf of Hong

Kong. The Hong Kong Government could therefore quite

reasonably argue that the surplus revenue which it

receives for passport issues should continue to be

regarded as part of the long established overall

reciprocal arrangements and that they help to finance the

deficit incurred on entry clearance work.

5. A further point is that the UK passport fee charged

under the Consular Fees Order is set at a level intended

to cover the cost of the passport issuing operation in

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