TNAG-0528-FCO40-623-Departmental-briefs-on-Hong-Kong-1975 — Page 5

CONFIDENTIAL

policy. A more dangerous situation for the Colony could arise if the radicals came to power following the disappearance of Mao and Chou. However, the probability of this happening is fairly remote.

4.

There are two outstanding issues between us and the Chinese at present. The first concerns their request to establish an official representative in the Colony. The last time this was officially raised, with Sir Alec Douglas-Home in June 1973, an aide-memoire was handed to the then Chinese Foreign Minister giving the reasons why we could not accept the proposal. These

were that it would:

(i) (ii)

(iii)

damage severely business confidence in Hong Kong;

create an alternative focus of loyalty in Hong Kong and thus make the government of the Colony more difficult; and

as a corollary of (i) and (ii), damage relations

between China and the UK.

Conversely, we do not believe that continued rejection of the Chinese proposal would do serious damage to relations between Peking and London. The Chinese have not raised this question with the present Government but it is possible that they will press their case when Mr Callaghan visits China in the spring next year.

5.

The second issue relates to the level of Chinese

immigration into Hong Kong. Between 1971 and 1973 immigration from

hina into Hong Kong (both legal and illegal) rose from less than 3,500 to some 74,000. An influx of this magnitude puts an unbearable strain on the resources of the Colony. After representations to the Chinese the number of legal immigrants (those with Chinese exit permits) dropped from 56,000 in 1973 to 32,000, or an average of just over 90 a day, in 1974. The Governor would like to see a further reduction to 50 a day, the maximum number the Colony can cope with. As a first step towards achieving this end, he proposed that Hong Kong should return all illegal immigrants apprehended on first entry to the Colony, except genuine refugees and cases of real hardship. After discussions with the Chinese, the new arrangements were brought into force on 30 November. They have had a considerable deterrent effect.

CONFIDENTIAL

/Hong Kong/UK Relations