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positive, in accordance with the wishes expressed by both sides during Huang Hua's visit to India in June 1981. The important point was that after 20 years the two sides had sat down and

talked. This in itself was a constructive step. But the

border question was complicated. No breakthrough could have

been expected after just one round. The two sides had expounded

their views. This had helped to enhance mutual understanding,

but there were still differences. Talks would continue in the

future to find a fair, reasonable and comprehensive settlement

of the issue. Other bilateral issues discussed included

cultural, scientific, trade and economic relations. The talks

had been a good beginning. Dates for the next round would be

decided through diplomatic channels.

Bilateral Issues

15.

Mr Atkins noted with pleasure that relations between Hong Kong and China were very good, especially in the economic

field. One problem was that of legal immigration from China

to Hong Kong about which proposals had recently been put to the Chinese. Mr Zhang replied that the 'consistent and clear cut'

stand of the Chinese Government was that the Chinese people had

the right to travel freely to Hong Kong for family reunions

or to visit friends. Hong Kong should provide facilities for

this. Numbers varied, but China did not intend to let too many people go to Hong Kong and thus create difficulties for

Hong Kong. The British proposals of November 1981 were being

studied by the competent authorities. In due course the Chinese

would be ready to discuss the proposals with the UK side. He

was sure that the problem would be solved by the two sides in

the spirit of mutual understanding.

16.

Mr Atkins noted that the China Visa Office in Hong

Kong had now opened. This seemed a sensible arrangement,

facilitating travel between Hong Kong and China. Mr Zhang

agreed.

17.

Mr Atkins said that we were waiting for the Chinese

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