CONFIDENTIAL

(a)

(b)

(c)

(d)

if Hong Kong judge that they themselves have a strong economic interest in issuing a visa, eg to a representative from a firm with a legitimate commercial interest of benefit to Hong Kong: guidelines have been worked out to ensure that the number of such visits at any one time do not become excessive;

if the visitor is of real importance. (This would not automatically include all Soviet and East European Ambassadors and diplomats, although in such cases a recommendation from our Head of Mission based on particular (and usually local) considerations will always be taken into account.);

in the case of cultural events if the visit is by an individual or group of the highest international standing;

exceptionally if attendance at an official international function is justified, and the individual is acceptable. Where possible Hong Kong avoids being host to international functions where embarrassment might arise over the refusal of visas to participants.

We quite understand that this is a difficult policy to justify to Russians and East ropeans - particularly since all cases will be treated on their individual merits, which ill make it difficult to maintain an appearance of consistency. We would suggest that e best tactic is not to offer explanations (in any event we cannot often give the real asons), but simply to take the line that Hong Kong is self-evidently "a special case".

There is clearly a problem in balancing on the one hand, the special needs of ong Kong and the requirements of Anglo-Chinese relations, and on the other hand our enerally good relations with the countries of Eastern Europe and our fairly liberal visa actice elsewhere in the world. We think it inevitable that, in present circumstances

least, the former must prevail. This means that from time to time offence or nbarrassment may be caused, or at least pretended, as a result of a visa being refused.

If you should become aware of evidence that UK or Hong Kong interests have in actice suffered from the refusal of a Hong Kong visa to an East European or a Russian u will no doubt let us and Hong Kong know. But there is considerable evidence - eg rer ship repairs that the Soviet Union are prepared to pay a premium price for getting y toehold in Hong Kong; and we must take hard luck stories with a pinch of salt.

We suggest that this Circular should be brought up yearly intervals.

STRIBUTION:-

1 Heads of Mission

HONG KONG & INDIAN OCEAN DEPARTMENT

CONFIDENTIAL

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