A

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of the Police at the end of 1977.

The Hong Kong economy has

made a good recovery from the recession in the mid-1970s and

has sustained high growth rates in the last few years. There

have recently been problems of over-heating; corrective measures

were taken in the recent budget.

Current Issues

(a) Immigration from China

8.

Over 100,000 people came to Hong Kong from China legally

and illegally in 1978. The Hong Kong Government return to China

illegal immigrants who are arrested on the border, though each

case is considered on its merits and where there are special

humanitarian or other reasons particular individuals may be

allowed to stay. Those who reach the urban areas are allowed to

remain. The influx has continued at an even higher rate in 1979.

The Chinese Government have responded helpfully to representations

about this problem but have genuine difficulties in controlling

the numbers.

(b) Vietnamese Refugees

9.

Refugees from Vietnam are arriving in Hong Kong much faster

than they can be resettled. There are now some 18,000 Vietnamese

refugees in Hong Kong; over 14,000 of them arrived this year.

We have urged the United Nations High Commissioner for Refugees

and potential recipient countries to speed up resettlement.

have also agreed to take an extra 1,000 refugees from Hong Kong

for resettlement in Britain.

Future Issues

We

10. A separate paper setting out some of the considerations

likely to affect policy towards Hong Kong over the next few years

will be submitted separately.

Hong Kong and General Department

Foreign and Commonwealth Office 25 April 1979

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