TNAG-2371-FCO40-3446-Hong-Kong-nationality-UK-passport-scheme-British-Nationalit-1991 — Page 114

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Immigration and Nationality Department

Lunar House 40 Wellesley Road Croydon CR9 2BY

Telephone 081-760 (GTN 3822)

Mrs Judy Ching

Immigration Department

HONG KONG

HOME OFFICE

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Your reference

8 Janbarjering91.

Date

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Mrs Bunowe Mis Davies, LAB.

Dear Judy,

UK TEAM; PROCUREMENT OF COMPUTER SYSTEM

We are pressing ahead with arrangements for the procurement of the system. It now seems unlikely that the system will be available for use in Hong Kong until sometime in May; we shall therefore have to resort to fall

fall back arrangements for the printing of early certificates. I shall be writing further about this before my next visit later this month,

The purpose of this letter is to explain how we are to go about handling the contractual arrangements for procuring the system. Because the arrangements are unusual, we shall need to draw up a Memorandum of Agreement between our two governments. This will assist in explaining the procurement to the Public Accounts Committee of the House of Commons should the need arise. In particular, the following aspects will need to be covered.

a) Ownership and management of the system. In order for the Home Office to be able to draw up and sign the contract, formal ownership of the system must rest with the Home Office. Given that it is to be operated by Home Office personnel (with your secondees) on Home Office work I am sure you will agree that this must be right. The system will at all times be the responsibility of, and will be managed by, the UK team.

b) Payment of costs. Initial procurement costs will be paid by the Home Office from funds paid in advance by HKG into a suspense account. Annual maintenance and support costs will be paid under the same arrangements from funds paid into the Home Office suspense account by HKG.

c) Liability. HMG will not be liable in any way for any damage caused to HKG property as a result of the malfunction, ignition or destruction of the system howsoever caused. The contractor may meet liabilities up to a certain level, but you would need to ensure that HKG insurance policies covered any likely excess.

d) Disposal of the system. Decisions on disposal of the system will rest with the Home Office.

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