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MEMORANDUM

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

Visa Office in Hong Kong, it will enjoy the

following privileges:

a.

exemption from taxes on its revenue (eg

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;

/d.

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