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Chinese side and we are grateful for the efforts which they have
made to restrict the flow. We are also grateful for their
agreement to take back refugees from Vietnam who come to
Hong Kong after being settled for some time in China. But the
numbers are still far too high. In the last 21 months Hong Kong
has absorbed 230,000 legal and illegal immigrants from China.
The present rate of arrivals is the equivalent of at least
125,000 a year and may be considerably higher. Hong Kong simply
cannot continue to absorb people at this rate without a very
serious effect on the economy and stability of the territory.
We urge the Chinese authorities to take the necessary steps to
bring the numbers down to manageable proportions.
V
Hong Kong
can accept up to 30,000 immigrants a year the level normal
between 1975 and 1977 but no more.
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NEW TERRIROTIRES LEASES
4. There is also a short-term problem related to land leases
in the New Territories of Hong Kong. Sir Murray MacLehose
explained the problem, and the way we proposed to deal with it,
during his visit to Peking in March. HM Ambassador outlined our
proposals in more detail in July. We are sorry that the Chinese
have found these proposals 'unnecessary and inappropriate'.
They were carefully designed to deal with a genuine problem in
a way which would not prejudice the Chinese position on the
long-term future of Hong Kong. This problem will become more
acute as time goes on and it will have to be dealt with fairly
soon if investment is not to be affected. Otherwise Hong Kong
will be unable to play its full part in the modernisation of
Premier China. Remarks such as those by Mr Hua at his recent press
conference have been helpful. But they cannot deal with the
practical problem of the diminishing span of land leases. So
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/if