(b)

(c)

On our part, it was confirmed that :

co-operation over the proposed new arrangements would be forthcoming;

overstayers would not be subjected to any indignities, although there would be occasions when persons unwilling to return to China would need to be escorted to the border. The validity of this latter point was acknowledged by the Chinese; and

further consultations would be needed.

Comment

7

The Chinese response is as good as could be expected in the circumstances. Nevertheless, the only unequivocal advance on the present position is the undertaking to accept back those two-way permit holders who overstay. Assuming that the daily average number of arrivals remains at 150, and that the percentage of one-way permit holders does not rise above the present 75% (about 112 a day) the effect of the new arrangements could be to lower by up to 38 a day the numbers now entering Hong Kong for settlement. A reduc- tion of up to 13,800 per annum for whom social services, housing, etc, would otherwise have to be provided, would be welcome.

Further approach to the Chinese

8

The Chinese reply opens the way for the introduc- tion of controls on length of stay and return of two-way permit holders. The details will have to be discussed with the Chinese. This is probably best done with NCNA in Hong Kong who have a better understanding of the practicalities than the Ministry of Foreign Affairs in Peking. There is little point in attempting an immediate reduction in the pro- portion of one-way permits: this could be pursued when new arrangements for two-way permit holders have been working smoothly for some time. We should build on the apparent Chinese acceptance of the principle that one month is normally sufficient for a family visit.

9

The further approach to the Chinese should take the following line :

(a)

as from an agreed date (which we will seek to make as early as possible) two-way permit holders will be treated as visitors and admitted for one month only. Their permits will be stamped accordingly;

SECRET

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