Hong Kong with being the Master of a passenger ship having on board

passengers in excess of the number allowed, he faces a four-year

jail sentence and a large fine if convicted under new Hong Kong

legislation intended to deter trafficking in refugees. There is

strong evidence to suggest that the passengers on the HUEY FONG

were not, as they claimed, genuine small boat refugees who had been

picked up at sea, but paying passengers whose departure from Vietnam

had been pre-arranged with the connivance of the Vietnamese

authorities.

Immigration into Hong Kong from China

12. Hong Kong already faces a much greater problem caused by legal

immigrants from China. Hong Kong traditionally accepts anyone to

whom the Chinese Government are prepared to give an exit permit.

But, because of the very crowded conditions in Hong Kong, it is

difficult for them to absorb immigrants at a rate of much more than

50 a day. In the early 1970s, when the numbers of immigrants from

China started to rise sharply, an informal agreement was reached

with the Chinese authorities to limit the numbers of exit permits

to about the 50-a-day level. In 1978, probably as a consequence of

greater freedom of movement in China, the rate of arrivals again

rose, reaching over 300 a day by the end of the year. During the

year more than 70,000 legal immigrants arrived from China. We have

made repeated representations about this to the Chinese authorities,

emphasising in particular the strain that is placed on Hong Kong's

social services. We believe that they understand the problem, and

are making efforts to control the numbers. During January, the

figure fell to about 200 a day, but even at this leval the rate of

arrivals poses a serious problem for Hong Kong.

/13. There

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