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I know that there is concern that the influx of people from China,

and the swelling number of Vietnamese refugees may put all that

at risk. I share that concern.

But I am hopeful that the Chinese

Government will take effective measures to control the situation

on the border, and that the security forces here will be able to stem

the flow of illegal immigrants in the meantime. We are also pressing

vigorously for international action to deal with the problem of

Vietnamese refugees. As you know, the Prime Minister has taken the

lead in calling for an international conference, and there is a

good prospect that this will take place within the next few weeks.

Britain's relations with China are now in a very healthy state and

I look forward to giving them even more content. Chairman Hua

Guofeng will be coming to Britain at the end of October and that

will be a major event. I doubt whether I shall have an opportunity

to visit China before then, but I look forward to doing so later.

The very good state of Sino-British relations is due in no small

part to the mutually beneficial relationship which you in Hong Kong

have built up with your Chinese neighbours. The Governor has told

me about his visit to China in the spring. The way in which he

was received by Vice Premier Deng Xiaoping and other Chinese

leaders speaks for itself.

A word about trade. I need hardly say that we do not expect to

make a profit out of Hong Kong. But it would help a great deal

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