TNAG-1406-FCO40-1881-Future-of-Hong-Kong-passports-and-visas-1985 — Page 85

Reference...GNN...340/39.3/1....

(159 CS

Miss Veale

Copy to: Mr Powell, HKD

ISSUE OF BN(O) PASSPORTS IN HONG KONG: FINANCIAL ARRANGEMENTS

Please see Mr Escritt, Finance Department's minute of

23 September and the Treasury letter of 24 September below.

1.

=

X148)

2.

This is a discouraging reply, particularly since in the meantime we had been receiving optimistic signals over the telephone. I think that we have no option but to go back to Hong Kong straightaway and ask them for as detailed an estimated breakdown of their passport issuing costs as they can provide. Finance Department have based their objection largely on the basis of the figure of £4.00 given as the profit per passport, but I am inclined to think on reflection that this figure will be found to be much lower. At the current rate of exchange, i.e. £1.00 Hong Kong $10.215, the price charged for a BN(0) passport would be 153.225 Hong Kong dollars (i.e. to equate with our fee of £15.00). The basic price of a passport in the UK, including VAT, is £1.40, which at the present rate of exchange and including a notional amount for freight, would amount to about Hong Kong dollars 15. This is a relatively small part of the costing make- up and I would expect the staffing and accommodation elements to occupy the lion's share of the residue. Another factor is that inflation will undoubtedly take its course in Hong Kong in the ten years of BN (O) issue by the Governor, whereas the price of a British passport, which must remain the basis for the BN (O) fee, is not necessarily affected by inflation and may not change over the period. I attach a draft along these lines.

I suggest that we consider the need for an inspired PQ (para. 3 of Mr Escritt's minute) with Finance and Hong Kong Departments in the context of our eventual policy on fees.

3.

4.

Mr Escritt says that the Consular Fees Act 1980 would not be the legal basis for the issue of BN (O) passports (para. 3). This raises the interesting question of what would, then, be the basis for issuing BN(0) passports, given that the Governor will be acting for the Foreig Secretary in this respect. Do you think this should be put to the

Legal Advisers please?

25 September 1985

HD Moreh

H D Marcelin

NTD

CODE 18-77

AWO Ltd. 7/84

HKK

0+0/28

RECEIVED I! REGISTRY

- OCT 1985

DESK CENICER

INDE

TA

M.

BEONTAY