Imaging and spectroscopy with the Hubble Space Telescope show that LBQS 010
3-2753 (V = 17.8, z = 0.848) is a binary quasar with a separation of 0."3,
or 2.3 kpc. This is by far the smallest separation binary quasar reported t
o date. The two components have very different spectra, including the prese
nce of strong broad absorption lines (BALs) in component A only. The emissi
on-line redshifts, based on the broad high-ionization C IV lines, are z(A)
= 0.834 and z(B) = 0.858; their difference is 3900 km s(-1) in velocity uni
ts. The broad C IV lines, however, are probably not a good indicator of sys
temic redshift, and LBQS 0103-2753A and B could have a much smaller systemi
c redshift difference, like the other known binary quasars. If the systemic
redshift difference is small, then LBQS 0103-2753 would most likely be a g
alaxy merger that has led to a binary supermassive black hole. There is now
one known 0."3 binary among roughly 500 QSOs that have been observed in a
way that would reveal such a close binary. This suggests that QSO activity
is substantially more likely for black hole binaries at spacings similar to
2 kpc than at similar to 15 to 60 kpc. Between 1987 and 1998, the observed
Mg II BAL disappeared.