CONFIDENTIAL

10. Neither is acceptable.

There is not the staff or accommodation

in the Embassy in Peking to issue the visas. The Hong Kong Government would not be happy for CTS to process the applications in Hong Kong.

Most of those claiming to be in transit want to settle in Hong Kong.

Bona fides could not be satisfactorily checked from documents provided by CTS. System would be inefficient and some with valid

visas would have to be returned. This would be unsatisfactory and lead to another argument. We have however recently agreed also to allow those with valid passports, onward visas and tickets to enter

Hong Kong at Kai Tak Airport. This should ease the problem. The

Chinese want us to agree to discuss this problem and if pushed we

should agree to do so.

Alleged Maltreatment of Chinese Visitors

11. The Chinese, including Huang Hua to Lord Carrington, have alleged

that Chinese citizens passing through Hong Kong have been maltreated

by the Immigration Department. No specific cases have been substan-

tiated but we have been and remain ready to investigate any specific

allegations.

Official Chinese Representative in Hong Kong

12. Chinese have raised idea several times in recent years (though

not during Lord Carrington's visit in April 1981). May well revert.

Previously we have taken line that time was not ripe. First Director

of New China News Agency (NCNA) is now channel of communication

between Hong Kong and Peking and accepted as de facto representative.

If Chinese now propose formal status for Representative we should

not rule out but insist that it would be very unsettling to Hong Kong

unless balanced by something definite about at least medium-term future. Essential in any case that functions and role of Represent-

ative be defined and agreed so as to avoid 'two Governors'.

CONFIDENTIAL

/Chinese

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