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should be completed by the end of 1993. The processing of the second tranche of some 8,000 places will take place during

1994.

6.

Operationally, it would be possible to transfer to the BTC

the nationality/consular functions for all groups apart from

BDTCS and BN (0)s (no more than about 10,000 passport and about 40 consular cases per year). This was already considered in

1988. The conclusion then was that such a move would create

ill feeling amongst the Hong Kong public, fuel arguments that

this was a step by the UK to withdraw from her

responsibilities over BDTCs and BN (0)s well before 1997 and in

fact make them second class citizens. We agreed in May 1991

with the Hong Kong Government that these reasons were still

valid. We also agreed that HKID's pivotal role in the BNHKA

Selection Scheme was a further strong reason to delay the

transfer until administration of the nationality scheme is

completed. We concluded that HKID should retain, until very

close to 1997, responsibility for all passport work and for all "consular"/protection work. (BDTC and BN (0) registration will cease in 1997, though passport renewal for BN (0)s will continue).

7.

We do however see a particular case for assuming

responsibility for visa work well before 1997. In practical

terms this would enable staff of the BTC to iron out teething

problems to ensure as smooth a transition as possible. There

are also security considerations. It would be desirable for

UK staff to be in a position to exercise control over entry clearances at what could be a politically sensitive time in Hong Kong, when there could be political pressures on HKID staff. It would also be preferable to control access to our more sensitive documents, such as the Visa Warning List and

the Special Visa Directive, which we would not like to see

fall into Chinese hands. The assumption of responsibilities

brief.consgen.BTC

JEB

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