Annex B

MEMORANDUM (Prepared by the British Embassy Peking)

1.

In the course of several meetings between British and Chinese representatives held in London and Peking from 1979 to 1981 on matters relating to the proposed visa office of the Ministry of Foreign Affairs of the People's Republic of China in Hong Kong, the following understanding was reached:

(I)

In order to meet the growing need for economic, trade, tourist, cultural and other exchanges the Chinese side and the British Authorities in Hong Kong orally agreed on 9 August 1979 that the Chinese side was to set up in Hong Kong a visa office of the Ministry of Foreign Affairs of the People's Republic of China.

(II)

To ensure the smooth functioning of the said functioning of the said visa office in Hong Kong, it will enjoy the following privileges:

(a)

exemption from taxes on its revenue

(e.g. from visa fees);

(b)

the right to use cypher;

(c)

exemption from taxes on salaries or

emoluments of its China-based officials

and Staff members;

(a) courier service to be exempt from search;

(e)

the premises, documents and archives to

be exempt from search;

(£) the China-based officials and their

dependents not to be liable to arrest

or detention.

/2.

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E

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