Confidential

2.

4. Our Embassy in Washington have reported to Hong Kong and to us that the State Department have exhibited a certain amount of unease, at the official level, over this matter. The Department is apparently under a measure of Congressional pressure on the subject and they envisage the possibility of a situation arising in which the United States Government might be obliged to lodge some kind of protest with us.

Recommendation

5. This kind of enquiry is better dealt with by discussion

rather than by correspondence because of the type of issues and information involved. I accordingly recommend that Mr. Royle should raise the matter with Mr. Johnson at their meeting tomorrow morning about Trade Union legislation (the Overseas Labour Adviser has prepared a brief on this).

6.

The Special Branch report could be used by Mr. Royle as

background information for the purposes of such a discussion in confidence (the Director of the Special Branch has said that the

material in the report can be used without prejudicing any sources). In addition, in talking to Mr. Johnson, Mr. Royle

might make use of the following information:

(a) None of the individuals in question has been deported and

no permit to reside in Hong Kong has been terminated before its date of expiry. All that the Hong Kong

authorities have done is to refuse to extend a visa when

its renewal has been requested.

(b) There has been no discrimination against students and

teachers as such.

(c) The particular circumstances of Hong Kong are very

(a)

different from those obtaining in Europe or in North America. The dense population of Hong Kong (which averages 10,000 persons per square mile) can easily lead to situations in which minor issues (e.g. peaceful demonstrations) can quickly lead to serious riots.

The Hong Kong Government would not be carrying out its

duty if it allowed aliens publicly to express their

/disapproval

Confidential

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