TNAG-0941-FCO40-1160-Visit-by-Lord-Carrington--Secretary-of-State-for-Foreign-and-1980 — Page 29

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13.

We can keep up pressure on Chinese authorities to exert themselves, and for our part do everything we can to deter illegal entry by thickening and perfecting our interception measures including expansion of the Marine Police. But this task is and will be beyond the capability of the police alone, so the work of the reinforced garrison has been invaluable. Indeed the work of all arms in conducting the intensive operations necessary has been of the highest order, and Hong Kong was immensely grateful for the speed with which HMG responded to the request for reinforcement.

14. An influx of about 200,000 a year cannot be accepted without the most serious social and economic implications in so small a territory. Since the Chinese are agreed on the need to stop illegal immigration, it is on this rather than the legal flow we must concentrate in the coming year. Apart from improvement in our defensive measures, the only additional action we could take would be to send

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back illegal immigrants who have penetrated the cordon and touched base and deny them a right to work and earn legally. This we will have to do if the situation deteriorates, but the penalties could be considerable both in terms of domestic friction and international criticism.

Hong Kong/China Relations

15.

Kong,

Our problems with China over legal and illegal immigration have coincided with a marked Chinese initiative towards a closer working relationship with not only Hong Kong businessmen, but also the Hong Kong Government. An express train, and ferry and air services have been developed with Guangzhou. Both the Minister of Trade in the Spring and the Governor of Guangdong in the Winter, visited Hong apparently to emphasise the part they hoped Hong Kong businessmen would play in the modernisation programmes, particularly in Guangdong. A special municipality has been established at Shenzhen, immediately over the border, to attract investment in industry and tourism. Already there are many hundreds of compensation deals and joint ventures in Guangdong, often of a fairly primitive sort, involving Hong Kong businessmen, and they are also undertaking many projects in other parts of China. So far they ha ve shown caution, to some extent offset by sentiment, a wish to have a finger in a pie of yet unproved characteristics.

16. It is difficult to see any long term political

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