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the pressure of anxiety would persuade them to focus on the problem. In the meantime relations were better than ever, with the N.C.N.A. in Hong Kong functioning to all intents and purposes as a diplomatic mission.
Vietnamese Refugees
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H E said that the pressure from illegal immigration had eased considerably since the decision in October 1980 to return all illegals. However, he was concerned about refugees from Vietnam. There remained 15,000 in camps in Hong Kong. A further 4,000 Vietnamese had arrived via China and would eventually be returned. Hong Kong was extremely grateful for generous US assistance. He hoped this would continue. Mr Haig replied that although domestic difficulties caused changes of mood it was intended that the programme be continued. It was part of the American way.
Recent interest in the US had focussed on the undesirables expelled from Cuba, who would somehow be returned, and the continuing problem of migration from
elsewhere in the Carribean and from Mexico. The recent discussions with President Portilla on the latter had been very productive. He noted that Vietnamese refugees had generally settled well and proved excellent workers. Sir Jack Cater said that in Hong Kong, refugees were allowed to work while awaiting resettlement. Employers preferred them to new immigrants from China. H E said that it had taken 30 years of the Maoist version of communism to undermine the natural Chinese work ethic. Rather than risk making political mistakes by carrying out new policies which might not last, or by opposing them, the usual ploy was to hold inconclusive meetings on new policy directives.
Special Economic Zones
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HE explained that the Chinese were using the Special Economic Zones to counter the effects of mismanagement. There were now some 600 ventures established just across the border where 3 years ago there were none. New working methods including incentive schemes and piece- work were being introduced through the
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