15. Chinese Immigration, Legal and Illegal

The problem is one of reducing legal immigration through!

Lo Wu from the present level of 80-90 a day to not more than 50 a day. Illegal immigration is also running at an unacceptable level. The influx of new population strains Hong Kong's resources.

16. The Walled City

Present policy is to tackle the improvement of living conditions in the Walled City slowly and without dramatic action. Lord Kennet has urged a different policy of direct approach to the Chinese Government.

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CONFIDENTIAL

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