The Annex to the Joint Declaration states clearly that Hong Kong BDTCs may continue to hold British passports after 1997.

When the BN(O) passport was first issued in 1987, the British and Hong Kong governments launched extensive publicity to introduce it to the world.

As a result of these efforts, all countries now recognise the BN(O) passport, and more than 70 countries allow its holders entry for visits visa free.

We have no doubt that the BN(O) will continue to enjoy the same recognition after 1997.

The question of returnability for BN(O) holders should not arise after 1997.

Every BN(O) passport has in it an endorsement saying that the holder has a Hong Kong permanent identity card which states that he has right of abode in Hong Kong.

The inclusion of this endorsement was agreed by the Sino-British Joint Liaison Group.

It will continue to guarantee BN(O) passport holders' returnability to the Hong Kong Special Administrative Region (SAR) after 1997.

There is, therefore, no reason to believe that the BN(O) would become unacceptable to third countries after 1997 on the grounds of non-returnability.

The BN(O) status can be held for life and all BN(O) passports will be renewable at the British Consulate General in the HKSAR after 1997.

The statement that the longest lifespan of the BN(O) passport is up to June 30, 1997 is incorrect.

We will continue to lobby more third countries to allow BN(O) passport holders visa-free visits.

We also hope to obtain the same privilege for the HKSAR passport.

The Joint Liaison Group is now discussing how the negotiation of visa abolition agreements for both passports should be carried out with third countries.

When there is a conclusion to these discussions, the UK will be one of our priority countries to approach for visa-free visits for HKSAR passport holders.

MAUREEN CHAN for Secretary for Security