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problem must be seen in context of Hong Kong's pressing social
problems.
5. The arrangements for refusing entry to illegals are a
revival of procedures which fell into abeyance in 1967 with
the onset of the cultural revolution. Before anyone is refused
admission, each case is carefully considered on an individual
basis. Full account is taken of any special circumstances or
cases of genuine hardship.
6. There is no reason to believe that those refused permission
to enter Hong Kong receive unduly harsh punishment on their return to China. The Chinese authorities would normally regard
illegal emigration as a civil misdemeanour, calling for measures
of social and educational discipline rather than penal correctives.
7. Number of legal immigrants (ie those who cross the border with permits) has been running at about 100 a day but has now
fallen to about 80. We hope the Chinese will reduce this
even further.
CHINESE REPRESENTATION
8. The Chinese have not raised this matter with the present
Government. We are satisfied with the present position.
KOWLOON WALLED CITY
9. I visited the Walled City: and (I agree) it is desirable
that conditions there be further improved. But complex legal
and political considerations are involved.
10. I saw a number of improvements which Hong Kong Government
have already made in the vicinty; I know they are continuing to pay close attention to alleviating the Walled City's problems.
DEFENCE COSTS
11. We intend to keep out forces in Hong Kong; but, as you know, we propose to make some reductions in them and to seek
from the Hong Kong Government a larger percentage of their cost when the present cost-sharing agreement runs out in 1976.
/12.