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rate had at one point reached 1,000 a day. The British Government

had increased the Hong Kong garrison to deal with the situation.

She would also be grateful for maximum cooperation on the Chinese

side of the border. There had been some improvement in the situation earlier in the year, following reinforcement of the forces

on the Chinese side. But the British Government were not sure if

this had been maintained. The situation had suddenly got worse.

The British Government did not understand the reasons for this.

Premier Hua first expressed his thanks for the excellent

arrangements made by the Prime Minister for his visit to Derby.

He had spent a very pleasant time there. Vice-Premier Yu had

visited Manchester. In both places, the Chinese delegation had had

very good talks on ways of expanding Sino-British economic

cooperation. The Chinese Government were very pleased with the

development of their bilateral relations with Britain and

attached great importance to their further improvement.

The Prime Minister had raised some particular questions with

regard to Hong Kong. Premier Hua had just received news from

Peking about the increased rate of immigration over the past few

days. There had been some speculation that he might sign some agreement on the subject during his visit to Britain. Perhaps some people had been afraid that it might not be possible thereafter

to leave China for Hong Kong.

The problem of immigration had come up when the Governor of

Hong Kong visited Peking earlier in the year. In the first half

of the year the rate had risen. The State Council had then ordered

the Guangdong Authorities to take effective measures against this,

and the rate had dropped. But it had risen again in the last few days.

Premier Hua wished to assure the Prime Minister that the Chinese

Government had taken note of this, and would take measures to deal

with it.

The Prime Minister thanked Premier Hua for this assurance.

Too much movement across the border would cause difficulties for

both sides. The British Government would do what they could, and

knew that the Chinese would do the same.

CONFIDENTIAL Premier Hua said

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