TNAG-0905-FCO40-1115-Immigration-from-China-to-Hong-Kong-1979 — Page 153

CONFIDENTIAL

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8.

To round off the picture of movements

across the border, you might find it useful to have for the record the attached statistics of all movements at Lowu by travellers using Chinese or Hong Kong documents covering the period from January to April. (The rationale for this table was explained in detail in Iain Orr's letter of 17 August 1978 to Kim Sullivan.) The most interesting point is the very large number of Hong Kong residents travelling to and from China in April. The rate of over 350,000 a month is equal to, or higher than, the Chinese New Year period. One major reason for

this is that the Chinese have relaxed their restrictions and customs duties on the importation of certain goods from Hong Kong like television sets. Literally thousands of television sets are being taken across the border allegedly to be given to relatives. It is clear, however, that there is already a racket involved, with couriers making several journeys. I am told that the price of television sets in Hong Kong has risen and that black and white sets are now much harder to obtain than before. This outflow of goods is, incidentally, causing us some concern from the economic point of view since it represents a net loss of foreign exchange.

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сс

(D C Wilson)

R C Samuel Esq

leve

Far Eastern Department

TJ B George Esq PEKING

P J Weston Esq

WASHINGTON

THIS IS A COPY

THE ORIGINAL HAS BEEN RETAINED IN THE DEPARTMENT UNDER

SECTION 3 (4) OF THE PUBLIC RECORDS ACT 1958

CONFIDENTIAL