IN CONFIDENCE

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5.8 During the Cultural Revolution, widespread unrest throughout

China spilled over into Hong Kong, especially in 1967/68. The

imprisonment of rioters in Hong Kong and the refusal to bend to

Chinese pressure for their release led to the sacking of the British

Mission in Peking. China now displays a much more relaxed and pragmatic

attitude towards Hong Kong and has been notably cooperative in recent

years. There are substantial, and increasing, Chinese investments in

Hong Kong and large numbers of Chinese officials in, for example, the

New China News Agency (NCNA) and the Bank of China and many trading

and other organisations. The Hong Kong Government's regular contacts

with the Chinese authorities are relaxed and easy; every indication is

that the Chinese do not wish to disturb the status quo. The present

Chinese Government have made it clear that they regard Hong Kong in its present form as making an important contribution to the modern- isation of the Chinese economy. China needs the foreign exchange to

pay for much of its import of technology over the next few years.

China, therefore, has a vested interest in Hong Kong's prosperity in

the foreseeable future. Statements by Chinese officials have been

aimed at maintaining confidence and thus prosperity. These were

repeated when Lord Carrington visited China in April 1981 and during

the Lord Privy Seal's visit in January 1982.

IMMIGRATION FROM CHINA

5.9 Hong Kong's capacity to accept immigrants, even temporarily, is

severely limited by the strain imposed on its essential services by an

already overcrowded population Hong Kong is one of the most densely

Immigration thus constitutes a constant

populated places in the world.

problem.

Ay

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5.10 The vast bulk of immigrants come from China. Between 1971 and

1973 their numbers increased so fast from about 13,500 to some 74,000

a year that in November 1974 Hong Kong was obliged to introduce a

policy of returning to China illegal immigrants apprehended while

entering the Territory, except where there were strong humanitarian

reasons not to do so. This policy succeeded until 1978 in greatly

/reducing

IN CONFIDENCE

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