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Hong Kong reactivate the death penalty. One cannot generalise about the deterrent effects of capital punishment. It differs in varying societies. The people of Hong Kong seem almost unanimous in their belief that it would have a deterrent effect there.

Will the Minister say a word about the mass transit railway? This has every prospect of being one of the most remark able engineering feats in the world. It was, therefore, naturally a disappoint- ment when the contract was not won by the British consortium. The main reason for the success of the Japanese tender was the absence of an escalation clause. This seemed remarkable at the time but quite incredible now in the face of current Japanese inflation. Do the Japanese still maintain their original tender? Hong Kong has certainly got a bargain.

If so,

The Minister will find a considerable sense of grievance among textile manu-

facturers regarding the EEC generalised scheme of preferences. A situation in which preferences in the British economy are given to Hong Kong's competitors but not to Hong Kong is quite impossible to explain or to justify. The exclusion of footwear has recently been removed but this is of small importance. I hope that the Government are making a supreme effort to negotiate the inclusion of textiles.

I appreciate that the Minister of State will not be able to deal with all my questions in 10 minutes tonight, but I should be grateful if those he is unable to answer orally could be answered by fetter before I go to Hong Kong next month. There will be concern at the prospect of paying a higher share of defence costs, as foreshadowed in the latest defence review. The general assumption that this is a highly pros- perous community well able to pay out more is not valid in today's conditions. The

is sound. Indeed, we in this economy country could take some lessons in how Hong Kong has kept its economy sound in the face of worldwide inflation, short- age of material and depressed export markets. These economic difficulties co- incide with quite exceptional capital expenditure necessary to carry out the social programmes I have mentioned. For these much additional finance by foreign loans and other means will have to be found. Now, therefore, would be a par-

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Hong Kong ticularly unfortunate time to be saddled with a greatly increased defence bill.

I hope that the Minister of State will enjoy his first visit to Hong Kong. I believe that what will impress him most are the people. These people, with their ability, their ingenuity, realism and per- sistence, are the principal asset of Hong Kong. They are the explanation for its success and its hope for the future. 12.53 a.m.

Mr. Philip Goodhart (Beckenham): I am grateful to my hon. Friend the Mem- ber for Howden (Sir P. Bryan) and to the Minister of State for allowing me to intervene in the debate.

I wish to raise the question of the fate of refugees from China in Hong Kong. There have been reports in the Press of an agreement with the Peking Govern- ment that newly-arriving refugees from China who are apprehended by the Hong Kong police are handed back straight

away to the Chinese Communist authori- ties. I know that the flow of refugees causes grave problems for the Hong Kong administration, but as my hon. Friend rightly reminded us, modern Hong Kong was built by refugees.

I hope that the Minister of State will confirm that we have not agreed auto- matically to hand refugees back for punishment at the hands, of the Com- munist authorities from whom they have tried to escape because such a course is inhuman and contrary to human rights.

12.54 a.m.

Mr. Hal Miller (Bromsgrove and Redditch): As one who has spent half of the last quarter century in the service of the Hong Kong. Government, may I urge the Minister to explain to my hon. Friend the Member for Beckenham (Mr. Good- hart) that it was always the practice during that period to

return illegal entrants from when they came? There has always been a quota for the entry of those of Cantonese origin into Hong Kong as part of the original agreement dating back to the cession of the territory and the lease of it. Will the Minister of State confirm that the community of Hong Kong is in no shape to sustain an uncontrolled volume of immigration because of the great social problems to which my hon. Friend for Howden (Sir P. Bryan) referred?

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