CONFIDENTIAL

Right of abode endorsement in the passport

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At present BDTC (HK) passports show right of abode in Hong Kong. It is

crucial to the confidence of Hong Kong in the passport and its acceptability

to third countries that the BN(0) passport should do also.

Since BN (0) passports will be valid beyond 30 June 1997 when the UK loses

sovereignty over Hong Kong the endorsement had to be agreed with the Chinese

using a fairly neutral form of words which did not cause offence by suggesting

that the right of abode was conferred by us. The Joint Declaration provides

that holders of permanent identity cards of the Hong Kong Special Administrative

Region may have this fact stated in their travel documents as evidence of

the right of abode in Hong Kong. The endorsement which has been agreed in Prozple "The holder of this passport has Hong Kong permanent identity card No (XYZ)

which states the holder's right of abode in Hong Kong" has been agreed on

Fowl this basis. ffrent is expected at the heat way of in 5-2-5-

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Hong Kong will produce the new permanent identity cards in time for 1 July 1987.

Acceptance of the BN (0) Passport by Third Countries

The international acceptability of BN (0) passports has been one of the major

Hong Kong concerns. Within this concern lie 2 issues: the securing of

the same rights for BN(0)s as for BDTCs (HK) and having a passport which

shows right of abode in, and therefore returnability to, Hong Kong so that

the holder has no problems at immigration controls. Foreign and Commonwealth

Office will take the lead in the presentation of the new status and the

passport to third countries once the Order has been made in 1986 and before

4 - 3 the issue of passports in 1987. Already however, the United States through

Vice-President Bush have announced that the US will accept BN (0) passports,

there has been a helpful response from the Australian Government and the

EC Parliament has passed a helpful resolution encouraging member states

to abolish visa requirements for BDTC passport holders visiting their countries.

Additionally, informal discussion with the consulates of a number of nations

suggests that there will be no difficulty in their accepting the BN(0) status

so long as they are satisfied as to the passport holder's returnability

to Hong Kong. The formula which has been agreed with the Chinese makes

quite clear that this is the case and we anticipate therefore few problems.

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