XN000022-1979-10-10 — Page 5

WEDNESDAY, OCTOBER 10, 1979

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HE NOTED THAT ASSURANCES OF BRITISH SUPPORT IN ANY EVENT HAVE NEVER BEEN LACKING AND LAST YEAR IN HONG KONG'S EXTERNAL AFFAIRS. WE HAVE HAD MOST HELPFUL AND POSITIVE SUPPORT FROM THE BRITISH GOVERNMENT.+

+BUT FOR OUR RELATIONSHIP TO BE SOUND IT MUST BE A TWO-WAY AFFAIR, AND BASED ON A COMMERCIAL AS WELL AS A POLITICAL RELATIONSHIP WHICH IS FELT TO BE BOTH WELCOME AND MUTUALLY BENEFICIAL.

+ IT IS THEREFORE A HAPPY AUGURY THAT THE MINISTERS DIRECTLY RESPONSIBLE FOR HONG KONG SHOULD BOTH HAVE VISITED US SOON AFTER TAKING OFFICE, AND THAT THEY SHOULD HAVE DONE THIS IN A YEAR WHICH IT LOOKS AS IF BRITISH EXPORTS TO HONG KONG WILL BE OVER 400 MILLION POUNDS STERLING.

+FOR OUR PART WE HAVE RECOGNISED THE IMPORTANCE OF HONG KONG-BRITISH RELATIONS BY ESTABLISHING A STRONG AND VIGOROUS COMMISSION IN LONDON AND BY THE ENCOURAGEMENT

OF BRITISH COMMERCIAL INTEREST IN HONG KONG AND BY CULTURAL AND OTHER EXCHANGES, HE SAID.

MARKED REDUCTION OF LEGAL AND ILLEGAL IMMIGRATION IS

NOW ESSENTIAL, SAYS GOVERNOR

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THE GOVERNOR SIR MURRAY MACLEHOSE, TODAY (WEDNESDAY) DISMISSED SPECULATION THAT THE LEVEL OF LEGAL AND ILLEGAL IMMIGRATION FROM CHINA REPRESENTED A DELIBERATE POLICY OF DILUTING LIVING STANDARDS IN HONG KONG AND DISPOSING OF UNDER-EMPLOYED POPULATION IN GUANGDONG.

+I BELIEVE THAT THE DIFFICULTIES OF THE CHINESE AUTHORITIES IN RESTRICTING THE FLOW ARE GENUINE,+ SIR MURRAY TOLD THE OPENING SESSION OF THE LEGISLATIVE COUNCIL.

+NEVERTHELESS, HE ADDED, WE CANNOT DISREGARD THE EFFECT OF WHAT IS HAPPENING.

SIR MURRAY SAID HONG KONG WAS SET ON A COURSE TOWARDS BECOMING A HIGH TECHNOLOGY AND RELATIVELY HIGH WAGE ECONOMY, WITH INDUSTRY STEADILY BECOMING MORE SOPHISTICATED AND THEREFORE MORE CAPITAL INTENSIVE.

+ I BELIEVE IT IS IN THE INTEREST OF CONTRIBUTING TO THE MODERNISATION PROGRAMME OF THE CHINESE GOVERNMENT, AS WELL AS IN THE MATERIAL AND SOCIAL INTEREST OF THE PEOPLE OF HONG KONG, THAT WE SHOULD CONTINUE ON THIS COURSE, JUST AS IT IS ESSENTIAL THAT OUR PLANS FOR IMPROVEMENT IN HOUSING CONDITIONS, EDUCATION AND MEDICAL AND OTHER SERVICES SHOULD SUCCEED, HE SAID.

+TO DO SO WE MUST HAVE A REASONABLE DEGREE OF POPULATION CONTROL.+

/SIR MURRAY