TNAG-2385-FCO40-3467-Future-of-Hong-Kong-visa-abolition-agreements-1991 — Page 4

CONFIDENTIAL

XCX(91)62

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Nevertheless, we will seek to include both CI's and HKSAR passports at the start of discussions, as indicated in the model at Annex A. (5)* But we will not make this a sticking point. If our negotiating partners are not willing to accept either or both of these documents, we will not insist. Instead, we will propose reviewing the issue at a later date. /

China angle

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The Joint Declaration specifically provides for the CPG to assist or authorise the HKSAR to conclude VAAS with states or regions (JD 168). This is reflected in Article 155 of the Basic Law. If, as proposed, the VAAS are not time-limited the intention is that they should bind the future SAR. We must therefore consult the Chinese side of the Joint Liaison Group. It cannot be assumed that they will take a positive attitude towards VAA arrangements for BN(O) passports, even though the Chinese Memorandum associated with the Joint Declaration envisages the use of such travel documents for travelling to other states and regions. But it should help if we propose that VAA arrangements should cover HKSAR passports, even if in practice these have to be dealt with at a later stage.

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If the Chinese can be persuaded to accept this proposal, we would agree to showing them the text of VAAS before signature should they ask to see them. If they reject our proposals, we would have to point out that this would create great uncertainty for Hong Kong travellers both before and after 1997. And that would be bad for trade and for confidence.

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As with other bilateral agreements, such as the air services agreements, we will need a specific authority from the Secretary of State to the Governor before we can conduct such negotiations ourselves. HMG has indicated that it is prepared to issue such an authority.

* Note (5) Some countries also have stateless residents and may seek reciprocal arrangements for them. Provided we are assured that they have the right to return and live in their countries of residence, this would present no difficulty.