The issue of the HKSAR passport is strictly controlled by the Immigration Department. Under the HKSAR Passports Ordinance, eligibility is limited to Chinese citizens who are Hong Kong permanent residents holding permanent identity cards. The passport contains advanced anti-forgery design features. To further enhance the security features of the HKSAR passport, an enhanced version will be introduced in January 2003.

    Applications can be made either by post or in person. Those from overseas can be sent to the Immigration Department through the nearest Chinese diplomatic or consular missions. All HKSAR passports are prepared centrally by the Immigration Department in Hong Kong, for collection either locally or at the relevant Chinese diplomatic or consular missions overseas. During the year, 416 744 applications were received, including 3 789 from overseas.

    The HKSAR Passports Appeal Board was established on September 7, 1998, to handle appeals against refusal of applications for HKSAR passports. It received 15 appeals in 2002.

    During the year, visa-free lobbying in respect of the HKSAR passport reaped encouraging results. The Government has secured visa-free access for HKSAR passport holders to visit Central and East European countries. Moreover, some Middle East countries have agreed that HKSAR passport holders would be granted visas upon arrival at these countries.

    To enhance travel convenience for HKSAR passport holders, the Government has also extended its visa-free lobbying activities to Central and South American countries. By year-end, 124 countries/territories had agreed to accord visa-free facilities to HKSAR passport holders. The Government will continue to lobby other countries to achieve maximum travel convenience for HKSAR passport holders.

    To strengthen working relations with the European Community, the Director of Immigration and his delegation were invited to visit Brussels in May to discuss closer liaison and international cooperation in combating effectively the use of forged documents and illegal migration.

    Other travel documents issued by the Immigration Department include Documents of Identity for Visa Purposes (DIs) and Re-entry Permits (REPs). DIs are issued for international travel and are valid for seven years. They are issued to Hong Kong residents who are not eligible for the HKSAR passport but are nevertheless unable to obtain a national passport or travel document of another country. REPs are issued to Hong Kong residents for travelling to the Mainland and the Macau SAR. During the year, 39 086 DIs and 127 336 REPs were issued.

    The Immigration Department also issues identity cards to Hong Kong residents. There are two types of identity cards: the Hong Kong Permanent Identity Card issued to persons who have the right of abode in Hong Kong, and the Hong Kong Identity Card issued to residents who do not have that right. During the year, 526 857 identity cards were issued: including 284 775 to new arrivals and persons attaining the age of 11 or 18 years, and 210 692 to people who applied for replacement identity cards due to loss, damage or change of personal particulars.

    The Government is making preparations to introduce a new generation of identity cards for Hong Kong residents in mid-2003, and thereafter to launch a region-wide identity card replacement exercise which will be completed within four years. The new identity card will take the form of a 'smart' card and will employ state-of-the-art technologies to make it more secure and fraud-resistant. While the personal particulars of the cardholder will be engraved by laser on the card surface, the templates of his two thumbprints as well as his facial image will be stored in the chip and protected by sophisticated cryptographic techniques. This will enable the Immigration Department to use the fingerprint identification technology to quickly authenticate the cardholder's identity and make possible the introduction of an Automated Passenger Clearance System and Automated Vehicle Clearance System in future. It is expected that when these two systems become operational, the Immigration Department will be able to open more counters for the traveling public and hence reduce passengers' waiting time for clearance at the control points.

    If the cardholder so chooses, he can also use his smart identity card as a library card and a driving licence in the near future. A Hongkong Post digital certificate may also be embedded into the chip, free of charge, so that the cardholder can have access to a variety of E-government services and other secure electronic transactions. In addition, spare capacity will be reserved in the chip to cater for introduction of other possible applications like e-purse. The implementation of a smart identity card scheme will therefore enable the Government to capitalise on the development of smart card technology to provide more efficient, better quality and value-added services to the community. This will be a significant step forward in enhancing the overall information infrastructure, promoting e-commerce and keeping Hong Kong at the leading edge of technology and innovation.

    The total cost of the project (including the non-recurrent and recurrent costs) is estimated to be around $2.8 billion over a seven-year period from 2001–02 to 2007–08. Development of the identity card issuance system is now under way. In view of the public's concern on personal data privacy, the Government is adopting a comprehensive strategy to enhance the protection of personal data through technical, legislative and procedural means. A Bills Committee of the Legislative Council is now examining the legislative amendments proposed by the Government. The Government is confident that the new smart identity card will be of the highest standard in terms of quality, security and data privacy.