B

unacceptable there and seen as another ploy by the United

Kingdom to override Hong Kong interests. A case was

that

therefore made to the Treasury / the financial arrangements

relating to passports issued by the Governor as agent for

the Secretary of State should be as close as possible to

the existing arrangements in Hong Kong, namely that the

Hong Kong Government should pay for blank passports ordered,

that they should meet all the administrative costs of maintain-

ing and operating the Passport Section of the Immigration

Department, and that they should retain any surplus of the

consular feer collected. In their letter of 10 March the

Treasury have agreed to this proposal. The Hong Kong

Government had already intimated that this type of arrange-

ment would be acceptable to them and indeed be the one which

they would prefer. They fully understand that the consular

fee they will be required to charge for passports issued

under the Secretary of State's authority may be lower than

that which is charged for passports issued in Hong Kong in the

own exercise of the Royal Brerogative.

Governor's

10. From 1 July 1997 a United Kingdom consular office will

be responsible for the issue of passports to all categories

of British nationals in Hong Kong. The normal financial

arrangements relating to passport and other consular fees

will then apply in the same way as at all other overseas

posts.

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