Hong Kong Memo/16.3.78

The Military Presence:

The principal function of the UK military presence is to demonstrate the good faith and commitment of HMG and this is an important role. Forces have no significance in terms of external security vis a vis China. The RN presence is simply a few patrol boats to counter smuggling (especially narcotics). RAF have personnel only.

Citizenship:

The

Sir Murray is very concerned that the present Green Paper proposes only two forms of citizenship: full UK citizenship and the rest of the world. This policy was evolved as a response to the pressure of immigration resulting from large numbers of people displaced from e.g. Kenya and Uganda being in possession of passports giving unrestricted right of entry. There are now only two significant areas in which HMG has responsibility for the populations of dependent territories: Hong Kong and Falklands. While it would be unreasonable to secure to them residential rights in the UK we should recognise our duty of offering them protection by giving them a third grade of passport.

Immigration to Hong Kong:

Sir Murray reminded me that in addition to the much publicised flow of illegal immigrants from Mainland China there is also a steady and considerable flow of legal immigrants from the same source. These arrive with written permits granted by the local commune and are permitted to settle in Hong Kong. Illegal immigrants come by both water and overland. If apprehended, they are returned to Communist China. He emphasised that illegal immigration is "a crime against society" and not "a crime against the revolution". This means that the punishment

is relatively light and may, in the first instance, consist of a few weeks' labour in the home village or commune without scoring "work points".

Subsequent cases are dealt with increasing severity and the right to settle

in Hong Kong was recently given to one individual who, having been caught

for the sixth time, would have been returned to six months or more hard labour. Once an illegal immigrant has arrived inside Hong Kong undetected, he is entitled to register as a citizen of Hong Kong. Onward migration is considerable but less than inward, amounting to 50 per week. 50-100 legal immigrants arrive every day. 60-120 are caught entering illegally every month and a proportion of these are permitted to stay after screening.

FEC Multifibre Agreement

The Governor is very concerned indeed by the implications of the restrictive multifibre agreement with the EEC. This is in breach of at least one clause of GATT. Once you start this sort of thing there is a great danger of a slide into protectionism throughout the world and a reduction in trade. Luckily the US is aware of this; nevertheless the agreement is a dangerous breach in the principle of free trade. The EEC Spokesman in the negotiation (Christopher Soame's successor) said his piece in the meeting in reply to Sir Murray's. Afterwards he said privately "You realise that, bad as this is, if you don't accept this collective agreement the result will be that there will be unilateral agreements with all the members that will be far more damaging to you".

Tord Elton

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