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Essential Facts
CONFIDENTIAL
Hong Kong/China Relations in General
Economic Co-operation
1. Majority of investment projects in China's special economic zones, like Shenzhen, involve Hong Kong firms. Substantial Chinese investment in Hong Kong includes 13 banks and major stakes in important construction projects. Chinese in Hong Kong gaining valuable commercial experience. [See Brief No 17 on Hong Kong's developing relations with Guangdong Province.]
Co-operation over Immigration
2. A system of regular cross-border liaisons came into effect in June 1981. Along with other measures this is helping to reduce numbers of illegal immigrants. [See paragraphs 3 and 4 below. ]
Immigration From China
Illegal Immigration
3.
Since October 1980, new policy of repatriating all illegal immigrants has successfully reduced number arrested trying to enter territory from over 200 per day to about 25. Chinese have played their part. Favourable reaction in Hong Kong. Authorities have been flexible in cases of genuine humanitarian concern.
Children
4.
In October and November 1981 there was a sudden increase from 30 a month to more than 600 - in number of children smuggled into Hong Kong. As a result, Hong Kong obliged to take urgent steps to amend immigration ordinance to provide powers to return children who evaded capture on first arrival. They also called on Chinese to help halt this traffic. These measures already effective in
bringing down numbers.
5. We are aware, as are Hong Kong, of humanitarian aspect and risk of adverse criticism, but hope the problem has been curtailed.
CONFIDENTIAL
/Pregnant