nder Section 402 of the Trade Act, China's emigration policy is of particular importance. It has undergone substantial

Mr. Liao ("Lee-ow"), the changes during the past three years.

Director of the Office of Overseas Chinese Affairs, stated on January 4, 1978: "We should provide ... for foreign nationals of Chinese descent to visit their relatives in China or make a tour of the country as well as for Chinese citizens to go abroad for reunion with their kinfolk of foreign nationality, simplify the procedure for getting permission to enter or leave China, give warm reception to those entering china, and improve our service." China has followed this theme consistently since this instruction was issued. Mr. Liao elaborated on this policy in December 1976 when he stated that Chinese who have received visas from other countries should be granted exit permits "immediately." During his visit to the United States in January 1979, Vice Premier Deng Ziaoping reiterated this policy publicly before the U.S.-China Peoples' Friendship Association. Adding weight to the Vice Premier's remarks, the consular agreement concluded during his visit contains a commitment by China to "facilitate the reunion of families and to process all applications as quickly as possible."

Performance has accorded with policy. Emigration from Hong Kong, the major exit point from the PRC, increased dramatically in 1978, reaching a total of 71,000, three times the number of 1977. This trend continued in 1979 with 28,000 emigrants entering Hong Kong in the first three nonths alone. The number has slowed somewhat since April due primarily to protests by the Hong Kong Government. Nevertheless, 4,000 to 5,000 emigrants continue to enter Hong Kong each month.

The U.S. Consulate General in Hong Kong received over 10,000 applications from PRC emigrants between November 1978 and April 1979. Chinese emigrants and visa applicants now far exceed the available immigrant visa numbers chargeable to China. Therefore, several thousand have been obligated to wait in China and in Hong Kong until visa numbers become available. conceivable that some of these applicants will have to wait for as long as five years before becoming eligible.

It is

We have had discussions with the Chinese on their emigration policy, we have studied the public statements made by their officials, and we have examined their emigration record. Based upon these various matters, we are confident that the objectives of Section 402 of the Trade Act have been satisfied.

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