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period in Hong Kong.
So holders of double journey permits would in practice have to be regarded as potential permanent residents, as happens at present. (The Hong Kong Government have recently introduced new measures to limit the initial stay of all legal arrivals from China to the period of validity of their Chinese documents (usually three months or less). Those who want to stay longer must apply for extensions, and the opportunity is taken to try to persuade them to return. However, very few do so.)
5. Against this background the Governor has proposed that the
Chinese ideas should be taken as a basis on which to build.
Instead of giving a straight warning that restrictions will have to be imposed if the numbers do not come down within two to three months, he has suggested that the Political Adviser should start by welcoming the new Chinese proposals but say that the Hong Kong Government would only be able to consider arrangements for genuine short visits once it had clearly been demonstrated that the numbers arriving for permanent residence had been reduced to 50 a day.
6. The Governor's proposed form of words is attached.
Mr Cradock has questioned one point, namely the spelling out of the conditions under which overstayers might be returned to China (Peking telegram No 285). The Political Adviser's response is in Hong Kong telegram No 343 (the text had to be read out over a secure line). I am inclined to agree with him, in particular with his argument that little would be gained by offering to discuss ways of persuading holders of two way permits to return to China. I also think that the Governor should have discretion to decide,
within agreed guidelines, how best to present the Hong Kong case in discussion with the Chinese on this subject at local level. We are in danger of getting bogged down in detail.
7. The approach now proposed still contains a warning that Hong Kong may have to impose its own restrictions "unless something is done within the next two months". But the warning is less
specific than the one the Governor had previously recommended; and since it would be issued in the context of a generally forthcoming reply to proposals from the Chinese side there seems
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