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China

5.

The Lord Privy Seal will have an opportunity during his short

initial stopover to discuss with the Governor the handling of Hong

Kong matters when Mr Atkins talks with Chinese leaders:

a) Future of Hong Kong: the maintenance of confidence against

the background of the approach of 1997. The Prime Minister's

planned visit will have to be taken into account (Brief No 10).

b) Hong Kong/China Issues: There are also a number of points

the Chinese may raise and for which defensive briefs are

provided (Brief No 11):

i) Official Chinese Representative in Hong Kong. This might

be raised by the Chinese either in the context of the future

or separately (Brief No 11);

ii) Chinese Visa Office in Hong Kong: The Chinese have sought

our agreement that this recently established office be

allowed to issue passports. We have said that this can only

be done in emergencies. They may ask for more (Brief No 11);

iii) Illegal and Legal Immigration: The former is hardly an

issue since the stricter repatriation policy has been

successful.

However, the number of legal visitors from

China remains high at about 150 a day. Proposals have been

put to the Chinese for reducing the number of those who

stay permanently in Hong Kong. There is also the problem

of illegal immigration of minors and pregnant women

(Brief No 11);

iv) Visas for Chinese Passport Holders Transitting Hong Kong:

The Chinese authorities have long been dissatisfied with

arrangements for visas for their passport holders transitting

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