CONFIDENTIAL

- 2 -

Prior to the introduction of CHAMPION the evasion ratio had fallen to 1 : 0.8. Probably since then it has fallen further as a result of the fact that with a reduction in the numbers attempting to enter, the Security Forces can give greater attention to each person seen attempting entry and therefore achieve a higher rate of catch. In addition, there have, of course, been the extension of the border fence, greater coverage of the sea approaches achieved by the deployment of additional vessels, aerial reconnaissance, improved intelligence on aiders and abettors and syndicates resulting in subsequent arrest and disruption operations. This is likely to have reduced the evasion ratio. The extent is obviously a matter of conjecture. The only hard fact is that since 23rd October 596 evaders have been arrested. In these circumstances there are perhaps somewhere around between 2,000 to 5,000 persons from China here illegally. Some of them must be surviving because they hold a forged identity document.

4.

The Police have identified a number of syndicates involved in the illegal production of i.d. cards. As an example, a recent raid produced records of the sale of 191 forged i.d. cards, 21 forged driving licences and orders for 309 more i.d. cards were seized. Whilst not all these were required by illegal immigrants, it confirms that the requirement to carry a form of identity and produce it to gain employment has stimulated the demand for forgeries and counterfeit cards. However the mere possession of an identity card does not guarantee immunity from arrest - indeed the general behaviour sometimes makes the police suspicious - IIs tend to give themselves away by their appearance or their behaviour. Obviously however the longer they stay the less weight can be given to this claim.

5.

You ask what we are doing to counter the increase. First we are maintaining the operations of the Security Forces. Their vigilance and effectiveness will continue. There are still 6 to 7 companies of troops deployed on the border and the perimeter daily, 1,000 Police, an increased presence at sea and daily aerial reconnaissances. These deployments will continue and will be increased if necessary.

6.

The following additional measures are being taken :

(i)

improvements to the border fence. The existing fence is being extended to the west as far as Tsim Bei Tsui. It has already reached the vicinity of Yuen Long Creek. In addition a portion of the fence will be realigned closer to the Shum Chun River in one sector where there are several villages between the existing fence alignment and the border. This will reduce the number of gates and make evasion of the security forces in that area much more difficult. The fence will also be fitted with an electronic fence protection system which will give immediate warning in a large number of control points of anybody approaching or attempting to climb or get through the fence;

CONFIDENTIAL

/ (ii)

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