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Kowloon Walled City, an enclave that was specifically excluded from the 1898 New Territories lease (although HMG unilaterally abrogated
this clause in 1899). My minute of 12 August to Mr Donald gives an
assessment of the purpose of Xu's visit. Mr Luce may also be
interested to see a note on the Walled City prepared by Research
Department.
Reactions in Hong Kong
8.
After a period of relative optimism during the talks both
commentators and the exchanges have become rather gloomier. The
lack of a reference to 'useful' talks after the 2/3 August session
was interpreted by some as a bad sign. The Hang Seng has dropped
from 1052.84 on 1 August to 996.28 on 19 August. The HK dollar has
moved from $7.325 to the US$ on 1 August to $7.48 on 19 August.
(But there has not been much movement in the dollar in the last
five days).
Wording in Passports
9. The Home Secretary agreed to the Secretary of State's proposal HKK3d that the immigration control endorsement should be removed from
page 5 of BDTC passport and replaced, where appropriate, by an endorsement giving the right of abode in the approprite dependent territory. This good news was passed immediately to Hong Kong.
101/100) Hong Kong Telno 1141 records EXCO's gratification at the decision
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and Telnos 1161-2 record the almost universal public acclaim with
which the news was greeted in Hong Kong. In the Secretary of State's and Mr Luce's absence, Mr Whitney has written a letter of
thanks to the Home Secretary.
22 August 1983
Zip
R D Clift
Hong Kong Department
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