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2004 Mini Cooper R50 Chili Red, Midlands 5 speed manual
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Looks to me like the switch on the transmission for the Reverse lights.

Do your Reverse lights come on at the back of the car when the headlights are on and you put it in Reverse?

Edit: It may be a bad switch if so, on my R50 there should be a short pin sticking out the bottom so the switch can be actuated.

I have the Midlands transaxle, I think your R53 has the Getrag box. Could be different switches.
 
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