TNAG-0742-FCO40-946-Relations-between-China-and-Hong-Kong-1978 — Page 190

CONFIDENTIAL

Reference

NOTE FOR THE FILE

cc: FEL

#KK,000/1

IN3

No

2 - 1978

VISIT TO HONG KONG : HONG KONG/CHINA RELATIONS

1. The major pre-occupation in this area during the period of my stay was the sudden massive upsurge in legal immigration from China. During April it reached an all time high of 148 per day, effectively doubling the natural rate of increase of Hong Kong's population. David Wilson had already spoken informally to NCNA and while I was there spoke again in slightly stronger terms. He is suggesting that the Chinese authorities should make sure that transients have onward visas but since this accounts for only 20% of immigrants some further action will need to be taken. The objective is to limit the inflow to a maximum of 50 per day on average and David Wilson is reasonably confident that the Chinese will be prepared to try and work towards this. If this cannot be achieved, then no further action will be taken in Hong Kong without first consulting us and Peking.

2.

It is clear that there have been 3 separate factors which have made the problem considerably worse. (1) The outflow is not in any way directed against Hong Kong, it is a natural result of the liberalisation of the PRC regime; (2) The immigrants are no longer the "useless mouths" of a few years ago,

indeed only 8% are over 60 while over 50% are under 30. (3) All this has been further complicated by a sharp drop in the number of emigrants from Hong Kong. The net result in 1977 was a gain of 32,800 people because of immigration from China.

3. The other major area where Chinese cooperation will be necessary in the near future is in ensuring greatly increased water supplies. A recent survey has shown that by the 1980s Hong Kong will face a massive shortfall in water which can only be made up from China. David Wilson intends to speak on this in Canton and again is confident that the Chinese will want to help. Indeed, he believes it likely that they will consider it their duty to provide water in the same way as it is their duty to provide foodstuff. One possible complication is that, because of its efforts to improve its own technological base and increase industrialisation, China may not have the resources available to undertake the work. In the event of this happening the Governor has already agreed that the Hong Kong Government should be prepared to provide material.

4. David Wilson did not feel that the Chinese would feel the need to accept anything in return for their help over water but that obviously it was important to accommodate them in any area where this is possible. One immediate issue was the question of non-scheduled flights from China and I am sure that David will be pleased to have received in time for his visit to Canton, our agreement that the Hong Kong Government should have the power to authorise non-scheduled flights.

22 May 1978

CODE 18. n

J Thompson

HK&D