(contd).

2

as a result of contributions from artists from the mainland. Even those without professional skills can help to strengthen our labour market and solve the problem of labour shortage. In fact, some industrialists are suggesting that the government should allow labours from foreign countries to come to Hong Kong, so we can see that the fear of burden created by people from the mainland is quite unnecessary.

Hong Kong's economy is quite flexible. According to a Government report, 100,000 people from China arrived in Hong Kong last year but the employment level was also the highest in the 70s. This indicates that employment has not been affected and a force of 100,000 people totally 'absorbed'. In fact, among the new arrivals, the aged people are being looked after by their relatives in Hong Kong and the able- bodied have been absorbed by the labour force. So these people are not creating a burden to the society or slowing down the economic development. On the contrary, in short term, they help stabilise the labour market; in the long run they can help expand Hong Kong's productivity basis, thus further bettering Hong Kong's prosperity.

We do not deny that a sharp increase in new arrivals may create a certain pressure but this situation has not occurred yet. In fact, the Hong Kong Government can take a positive attitude in dealing with the problem of immigrantsy. from the Mainland. As long as arrangements are appropriately made to facilitate travel, there should be no serious problems. Furthermore, any immigration procedures should be dealt with realistically and reasonably, taking into account the urgency of cases to enable prople to enjoy family re-union as far as possible. It should be pointed out that it is human for husbands and wives to wish to be re-united and relatives to visit one another and meet.

CC

PS/GH

C S

S for S

PA

D of I (3)

· DIS

Chancery, Peking

FED, F CO

H K & G D, F CO

19 March 1979

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