CONFIDENTIAL
12/8
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5. The arguments at a. and b. above are statements of fact and must carry some weight. The argument at c. is also true but it appears that it is unlikely to remain so for very much longer see paragraph 9 below). The argument at d. overlooks the fact that approximately half of Hong Kong's population are aliens.
6.
The Governor does not put forward any economic arguments. This may be because there is virtuallý full employment in Hong Kong where the economy is still extremely buoyant.
7.
There are at present about 40,000 Hong Kong Chinese in the UK of whom 70 per cent are reckoned to be Commonwealth citizens and the remainder stateless Chinese. The stateless Chinese normally come from the urban areas of Hong Kong (since it is necessary for an alien to have some skill in order to get employment in this country). The Commonwealth citizens come from the rural areas (the New Territories) where they have strong family ties with Hong Kong Commonwealth citizens working in this country. It is estimated that the Hong Kong Chinese in the United Kingdom remit between £2 million and £3 million annually to their families in Hong Kong - - a useful injection of money so far as the New Territories are concerned. A note by Mr. Webb- Johnson on the Hong Kong Chinese in Britain is attached.
8.
In straight terms of employment it would not be difficult for those Hong Kong Chinese who seek employment in the United Kingdom to find work locally in Hong Kong if they wished to do 80. The fact is that as unskilled or semi-skilled workers they can expect to earn much more in this country than in Hong Kong.
9. One answer to the argument in paragraph 4c. above is contained in paragraph 7 of Mr. Streeton's minute to Mr. Downing of 19 March - that as a result of the review of the country's manpower needs from foreign countries (with the aim of restricting - if not stopping the entry of unskilled and
- semi-skilled alien workers) there might very well be a virtual cessation in the intake of foreign workers from Hong Kong. The Governor is not of course aware of this.
10. For the reasons set out in paragraphs 2a. and b. and 9 above and in the interests of good relations between HMO and Hong Kong I strongly support Mr. Streeton's suggestion (endorsed by Mr. Downing) that the number of permits to be available to any one territory should be increased to 240 within the overall ceiling of 400. In arriving at this conclusion I have taken into account the following additional considerations:
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The Hong Kong Chinese in Britain rarely make a nuisance of themselves,
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CONFIDENTIAL
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