TNAG-0749-FCO40-953-Visits-of-officials-from-Hong-Kong-to-UK-1978 — Page 12

to U.K. and China of this arrangement were

(a)

(b)

NOTE:

China would gain the best port facilities in South China, a large amount of manufacturing plant and the technical and administrative expertise of Hong Kong's managers. It would lose most of the foreign exchange it now earned through Hong Kong but this could be replaced by increased direct exports from China of oil, coal, foodstuffs and manufactures.

Britain would avoid the responsibility of accepting a large influx of immigrants from Hong Kong. He emphasised the importance of race and immigration in U.K. politics and insisted that this consideration would be paramount in British minds. He stressed that the statements of British governments to the contrary could not be trusted and saw significance in the failure of ministers to make any commitments in respect of future immigration from Hong Kong.

The above record is a very brief account of a talk which lasted about 11⁄2 hours and it is only intended to cover the main points raised. There was considerable discussion on many of Easey's assertions and the note is not intended to convey the impression that his statements were accepted by the trainees.

SAWJ/jt.

22nd December, 1978

M+