CONFIDENTIAL
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Mr Fu thought that on present form this was unlikely the to come to the
Guangzhou cities generally, not to move from one city to another. itself had similar problems to Hong Kong in that large numbers of people who could not get permission to live and work there legally moved in anyway. But there was a difference, and here Mr Fu thought that Hong Kong could do something itself to improve the situation. If "illegal immigrants" into Guangzhou were discovered, they were usually sent back to their place of origin. They were not issued residence permits, and found it difficult to obtain rations and accommodation. The Hong Kong authorities on the other hand encouraged illegal immigration by registering and legalizing the position of those who managed to avoid the border checks and reach the urban areas. The Chinese side had suggested to Mr Donald already in 1974 that they were prepared to accept back people who had been there: this offer was still good. By refusing to accept it, the Hong Kong authorities were in effect making the problem much worse. Although I had been told in Hong Kong that very serious consideration wasbeing given to an end to the "home base" policy, I could not reveal this to Mr Fu. I therefore defended the policy along traditional lines, pointing out that the differences between the societies of Hong Kong and Guangzhou made direct comparisons invalid.
It was much easier for people to live in Hong Kong without dealings with the authorities, and there was a particular danger of exploitation of an illicit population, if such were created, by unscrupulous employers. I did add, however, that the Hong Kong authorities appreciated the argument Mr Fu had made and would like to be able to change the policy if a way could be found to avoid the drawbacks.
It was
8. On Shenzhen, Mr Fu said that the development of the city would be special. Entry to the city from the sorrounding counties of Guangdong would continue to be very strictly controlled. hoped that between Hong Kong and Shenzhen movement would be relatively free. Whilst the population would increase, not all f this would come from the Guangdong side. Some people would Live in Hong Kong and work in Shenzhen, others might commute in the opposite direction. The development of the city would therefore help relieve bottlenecks in Hong Kong not only in land and labour, but also in living space. Asked whether these ideas had yet been discussed with Hong Kong, Mr Fu said that there were as yet no firm plans or proposals. I said that I hoped that any specific proposals, particularly those affecting movement across the border, could be discussed at a very early stage with the authorities in Hong Kong. In principle all forms of cooperation and improved communication across the border were welcomed, but implementation would need to take effect only after careful consideration and agreement which would avoid making difficulties for immigration control in particular. (It is interesting that what appears to be envisaged at Shenzhen is not an alternative to Hong Kong under Chinese control, but a part of liong Kong under Chinese control. Perhaps in this way the Chinese hope to persuade Hong Kong residents that they are capable of administering a society in which they would
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/wish