CONFIDENTIAL

legal immigrants have already entered Hong Kong from

China this year.

7. The Chinese Government appear to understand the

practical problems that this influx creates for Hong Kong.

But they claim that, because responsibility for

issuing exit permits has been devolved to local authorities,

it is difficult for the government to control the numbers.

We accept that this difficulty is genuine, but not

insuperable. We hope that the Chinese will realise that

if the immigrants continue to arrive in Hong Kong at the

present rate this will pose a threat to the stability

and prosperity of Hong Kong, which is no more in the

Chinese interest that it is in ours.

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