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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 the second tranche 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 previously carried out by

HKID may mean that they will require less staff. If so we should certainly look at offering experienced locally engaged staff positions, on a selective basis; (although we

have explained to HKID, and they have accepted, that the

more senior posts of Entry Clearance Officers will have to

be filled by UK based staff).

8. The immigration section would be rather less labour

intensive than passport section, requiring some 16 UK based

and 32 locally engaged staff members, as distinct from 4 UK

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