TNAG-1408-FCO40-1883-Future-of-Hong-Kong-passports-and-visas-1985 — Page 80

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Mr Marcelin

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Reference....

CNN 340/393/1-H

RECEIVED

TOL:

ISSUE OF BN (0) PASSPORTS IN HONG KONG.

1.

เต

I refer to your minute of 9 August to Mr Grant.

2. Having now had confirmation that the Treasury have no objection, I can confirm that we are content with the financial arrangements for the issue of BN (0) passports in Hong Kong which you set out in paragraph 7 and the first sentence of paragraph 8 of your minute of 7 August.

May I stress two points: first, this is on the understanding that there are no net costs to the FCO (the latter part of paragrpah 8 seems to leave this slightly open); secondly, Parliament will have to be informed (I gather that this is to be done in a White Paper).

3. Since writing the above we have discussed further and I have also discussed with the Treasury. On the second of my two points, regarding the need to inform Parliament, you' said that the issue of passports would not now be covered in the White Paper and I invited you to consider the alternative of an inspired PQ. On the first of my two points, you explained that Hong Kong had sought to retain the whole of the fee they charged. I pointed out that on the present lower fee for issue of the current Hong Kong passport the balance per passport was £4 which would mean that the profit to the Hong Kong Government for issuing BN(0) passports between 1987 and 1997 would be 2 million times this sum, or £10 million. It would be wholly indefensible, not least to Parliament, if we let such a "profit" go to Hong Kong rather than accrue to the Reserve on the slightly dubious precedent of the Consular Fees Act 1980 (which would not in any case be the legal basis for the issue of the BN (0) passports). There may be some scope for compromise but in the first instance we should go back to Hong Kong and explain that the correct precedent is to look at arrangements for the issue of British passports abroad where, as from 1 April 1986, all fees will have to be surrendered as CFER's. To agree that Hong Kong should retain the cost of blank passports and their administrative costs of issuing them therefore represents a concession which should fully satisfy them.

I am copying this note to Mr Nelson in AEF of HM Treasury.

4.

ReGull

23 September 1985

霹

R E Escritt

Finance Department

OAB 2/116: 273-3742