CONFIDENTAL

- 6 -

to what

hunter?

(d) those visitors on two-way permits who did not

return to China would be repatriated (although

handled in a way consistent with their status as

visitors and not as illegal immigrants.)

17. Mr. McLaren explained that the proposals were designed

to reduce the numbers coming to Hong Kong for permanent

settlement therefore helping Hong Kong. But their successful, implementation would eventually permit an increased number of genuine visitors, thereby helping China. Mr. McLaren appreciated

that a decision on these proposals was not for Mr. ZHANG alone,

but for other provinces and also for Peking, where he understood

the matter was still under consideration. Could we hope for early progress on the matter?

1

18. Mr. ZHANG said that the problem had been under discussion

for some time. The greatest difficulty lay in the numbers of people in China waiting for exit permits. In Mr. ZHANG's personal

view progress might be made in the following way. Of the two

types of permit presently issued, the two-way permit should be

regarded as a "visit permit" (i.e. for tourism or to visit

relatives in Hong Kong). Mr. ZHANG believed that more of these should be issued. After an initial flood of applications from

people who had been waiting 10 or even 20 years, the situation

should stabilize once people realised it was easier to make

genuine visits. Fewer people would then be tempted to overstay the validity of their permit. Some people would continue to abuse

the two-way permit and we would need special measures to ensure

that they returned to China (e.g. by preventing their working in Hong Kong). The numbers of one-way permits issued would continue

to be restricted.

19. Mr. McLaren said that this sounded like a proposal for the issue of more permits rather than fewer. The Hong Kong Government

would have to be absolutely certain that visitors would return

before contemplating an even greater number of visitors.

CONFIDENTI

Mr. Bridge

/pointed out

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