CONFIDENTIAL
6. In conclusion, we could introduce a charging system for some holders of "service" passports. We would then be in line with some other major embassies (but not our major European competitors). To do this, however, would involve extra work in a visa section that is already working flat out to attempt to implement Alan Montgomery's report on the private visa side, while the rewards would be small (estimated loss through not charging "official passports" was £250,000 in 1989) and likely to be somewhat further reduced by the need for extra staff e.g. for collecting fees. It will also be necessary to take into account likely reactions from the British business community and the Chinese MFA. The former are not likely to be keen on a move which makes Britain appear less attractive than their competitors and which could lead to delays. Until Alan Montgomery's report, all the emphasis from London had been on the need to smooth the official visa process. Charging would hardly add to this. The Chinese reaction is difficult to gauge. Perhaps it would have been less important last year what the Chinese thought. But since we are no embarked on a programme of improving relations with the Chinese, it may not be the right moment to introduce a new, apparently hostile element into the equation.
7. It is important therefore that before any decision is taken, the point made in the last paragraph of Harris's letter of 20 October 1988 is again taken into account i.e. that we should not introduce what would be a costly scheme for the Chinese (and not actually produce much revenue for us) without taking into account the political dimension involved both for the UK and Hong Kong. It would seem sensible therefore to bring in FED and Hong Kong Immigration Department to the discussions at an early stage.
James E. Hoare
CONFIDENTIAL
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