2

2. It will not be a representative office of the People's

Republic of China and its functions will be restricted

to the issue of Visas.

III. The Chinese side has taken note of the explanations made in paragraphs 2,3 and 4 of the Memorandum of the British

Embassy in China. In the course of the talks with the British

side, the Chinese side also has clarified the following points:

1. The Visa Office is an office of the Ministry of Foreign

Affairs of the People's Republic of China. The British

authorities in Hongkong shall have the responsibility to

take all appropriate measures to protect the premises of

the Office from any encroachment or damage and guarantee

the personal safety of its officials and their dependents.

2. The Chinese side holds that in case of a criminal or

civil complanint against officials of the Visa Office

and their dependents, the British authorities in Hongkong

should settle the issue through diplomatic channels.

3. The premises of the said Office and the residence of

its Director purchased by the Office are properties

belonging to the People's Republic of China and shall

be exempt from taxes. Likewise, according to usual

practice, articles for official use imported into or

taken out of longkong or bought locally in longkong

by the said Office shall be exempt from duties and taxes.

After the Office is set up, the Chinese side shall

continue talks with the British side on the above-mentioned

matters so as to have them settled properly.

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