A letter received from the Treasury last week gives a
somewhat different answer to what we had been led to
expect, as was recorded in paragraph 9 of the enclosure
to your letter. You will be pleased to know that they
have confirmed that they would see no objection to the
cost of the passports themselves and Hong Kong's
administrative charges for their issue being met out
of the revenue from fees collected under the Consular
Fees Order current at the time. They consider, however
that any surplus consular fees will have to be surrendered
to the Consolidated Fund as extra receipts (CFERS).
This would of course mean that the issue of BN(0) passports in
Hong Kong would have to be taken into account when setting
the level of the UK passport fee. We shall be pursuing
these matters with Hong Kong and with your department.
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