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CONFIDENTIAL

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A C GALSWORTHY, HKD

20 February 1986

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Dr Wilson

BN(O) PASSPORT FEES

1.

on

the Treasury

We have been trying to reach agreement with

the financial arrangements connected with the issue of

BN (O) passports since last August. Finance Departmewn t are

in the lead.

ale

a

In August last year Hong Kong suggested that they bear costs of producing and issuing passports to BN(O) s and

the balance between this and the fee

fee to be charged

le.r the Consular Fees Order (currently £15). This is

ilar

the arrangement for the

the issue of BDTC passports

OW although Hong Kong set their own fee for the se

fees passport

will be set under the

REGISTRY

2 8 FEB 1986 RECEIVED

FICER

-PAJ

REGISTRY

@{ Acton Taken

passports.

BN (0)

Consul

ular Fees Order because they will be issued in the name

of the Secretary of State and also to provide continuity

after 1997.

ममत

A

3.

A problem

arose, however, when Finance Department

pointed out that from 1 April 1986 all Consular Fees must be

surrendered to the Exchequer as Consolidated Fund Extra

Receipts (CFERS). Finance Department discussed this with

the Treasury who replied in September last year that Hong

Kong could retain their administrative costs but that the

"profit" must be surrendered as CFERS. (The cost to Hong

Kong

issuing passports i s forty percent of the fee

charged.

This means that

sterling terms, the profit

of

in

accruing to the Hong Kong Government would be £7 per BN(O)

Their current profit on a BD TC passport, for

passport.

which they charge £20, is £12.)

CONFIDENTIAL

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