While we reserve our right to reinstitute controls we would be

prepared not to do so, for the time being and in the present confused situation, if the Chinese Government were to take measures

themselves to cut back the numbers. In view of the hope expressed by Mr Wang Tung that we should be able to solve the problem in a

spirit of co-operation we are willing to ask the Governor not to introduce controls at Lowu on November 15 as he had proposed. However, there is an acute problem of timing. The position has

become serious. When Sir John Addis first raised this matter in

Peking, the average daily number was 230. So far this month the

average daily number has been 380 (an annual rate of 130,000).

fact, we have been pleased to notice that the number has fallen

dramatically during the past few days. But if the former rate

were to be maintained, the burden on Hong Kong, especially in housing and social services, would become insupportable.

In

Movement to Lowu is closely controlled by the Chinese authorities; and though we understand the problem created for them by the issue of so many permits we believe that it is well within their power

to cut back the numbers very fast. We therefore look to the

Chinese Government to do everything possible to ensure that the

reduction of the past few days is continued.

The Foreign and Commonwealth Office

15 November 1973

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