TNAG-1562-FCO40-2126-Future-of-Hong-Kong-nationality-and-passports-Hong-Kong-(Br-1986 — Page 20

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B

Government), any change in the financial arrangements

would not be easily understood in Hong Kong.

Given the

present sensitivity of the people of Hong Kong in matters

relating to nationality and passports, this could be seen

as another ploy by the United Kingdom to override

Hong Kong interests.

8.

A case was therefore made to the Treasury that the

financial arrangements relating to passports issued by

the Governor as agent for the Secretary of State should

be as close as possible to the existing arrangements in

Hong Kong, namely that the Hong Kong Government should

pay for blank passports ordered, that they should meet

all the administrative costs of maintaining and operating

the Passport Section of their Immigration Department, and

that they should retain any surplus of the consular fees

collected. In their letter of 10 March the Treasury have

agreed to this proposal. The Hong Kong Government had

already intimated that this type of arrangement would be

acceptable to them and indeed is the one which they would

prefer. They fully understand that the consular fee they

will be required to charge for passports issued under the

Secretary of State's authority may be lower than that which

is charged for passports issued in Hong Kong in the

Governor's own exercise of the royal prerogative.

9.

It will be for the Government of Hong Kong to continue

setting the fee for passports they issue before 1 July 1997

to BDTCs. Such passports will continue to be issued in

the Governor's exercise of the royal prerogative. They

will have a maximum validity to 30 June 1997. From

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/1 July 1997