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4.
What the Hong Kong Government now propose is
(1) a return of the checkpoint to the bridge
(this was agreed in principle last year);
(2) the introduction of a system of referred
visas for all categories of Chinese (ie no
longer reserving an automatic quota for Kwangtung
citizens), and
(3) onward travel documentation for Overseas
Chinese seeking to return eg to Indonesia. The
Hong Kong Government propose to discuss this with
NCNA and if necessary fall back on a second set of
proposals which would be almost as effective in
dealing with the problem.
5. The measures proposed by the Hong Kong Government seem
sensible. In the opinion of HM Embassy in Peking they should
present no difficulties as far as the Chinese are concerned,
provided that the situation is explained to them both in Hong
Kong and Peking. The practical problems of reimposing visa
control do not seem to be insuperable.
6. Mr Royle may like to tell the Governor of Hong Kong that
we recognise the magnitude of the problem, and support the
measures which the Hong Kong Government propose to take. As for
the tactics, we do not think it would be wise to give the Chinese
the impression that the Hong Kong Government's proposals are
matter for negotiation. We think we should simply explain the
problem in detail and tell them that we have reluctantly concluded
that more stringent controls are necessary. We also think it would
be worth hinting to the Chinese that they should take more
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/strenuous