TNAG-0851-FCO40-1061-Future-of-Hong-Kong-New-Territories-leases-1979 — Page 94

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and June 3,800 arrests in 6 days to 31 October. Despite

further representations locally and in Peking, Chinese seem

unwilling or unable to take effective action.

Vietnamese Refugees

4. Essentially a separate problem. But some Vietnamese

refugees come to Hong Kong after having spent some time in

China. The Chinese have now agreed that where it is established

that refugees have spent long enough in China to be regarded as

having settled there, they may be treated as illegal immigrants

and returned to China. The first batch of some 700 were

returned in September

some 5,200 more (out of total of 63,000 refugees from Vietnam

still in Hong Kong). The Chinese say that they will be ready

to receive further groups in the next few weeks.

•

Hong Kong Government want to return

Property Leases in the New Territories

5.

Time fast approaching when expiry of New Territories Lease

in 1997 will begin to affect confidence. Chinese aware of this

and have been at pains to reassure local and foreign investors

that China satisfied with the status quo and has no early

intention to change it. This point made by Deng Xiaoping to

the Governor in March and again by Premier Hua at his press

conference on 7 October.

6. General assurances of this kind have had a favourable effect.

But cannot resolve legal and practical problems which arise from

fact that land leases in New Territories all due to end in 1997.

After discussions with the Governor and HM Ambassador, Peking,

we decided that best solution was to issue future leases in

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