CONFIDENTIAL
XCC(92)187
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So far, only about 400 000 BDTCs have obtained BN(O) passports. One reason for the slow rate of uptake may be that people are unaware that HKBDTC passports will cease to be valid in 1997. Another reason is that, when BN(O) passports were first introduced, some countries which accepted BDTC passports were unfamiliar with the new documents. Some Hong Kong travellers experienced difficulties and their problems received a lot of press attention. As a result, many people still believe that BN(O) passports are 'inferior' to BDTC ones. This perception is unfounded: of the roughly 70 territories/countries which accept BDTCs without visas, only Austria and Mauritius do not extend that privilege to BN(O)s. Nevertheless, the perception persists.
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Thus, there is a serious risk of a last-minute rush as 1997 draws nearer. Unless we take steps to ensure an orderly flow of applications, it is likely that last-minute demand could exceed our processing capacity(2)*. If that happens, significant numbers may remain unprocessed on 1 July 1997. Many people would then be unable to secure BN(O) passports. Government would be severely criticized.
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There is a similar risk in respect of naturalization. Under the British Nationality Act 1981, anyone who has ordinarily resided here for five years(3)* - and is not subject to a limit of stay may apply for naturalization as a BDTC. Successful applicants are eligible to become BN(O)s. There is no provision for imposing time limits on such applications. Therefore, in theory, eligible persons may apply for naturalisation up to 30 June 1997. Naturalization normally takes 18 months and we need time on top of that to process passport applications from new BDTCs. Therefore, we cannot guarantee to process applications received on or after 31 March 1995. We might be able to reduce the processing time. But even if we do, we will not be able to cope if significant numbers apply after March 1996.
*Note (2): At present, we can process about 1000 applications a day. We are considering how to improve productivity, but this will not enable us to cope if all one million applicants wait until 1996/97.
* Note (3): Three years if married to an HKBDTC.