TNAG-1037-FCO40-1287-Future-of-Hong-Kong-1981 — Page 135

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between the Hong Kong and Chinese Governments since 1949,

but with increasing openness and effectiveness since 1972,

following the exchange of Ambassadors between London and

Peking. Regular contact between the Governor and the

First Director of NCNA dates from 1978. The Political

Adviser and his staff are now in regular contact with NCNA

on all issues, and in all but name and formal privileges

NCNA acts and is treated by the Hong Kong Government as

China's official representative.

11'. Oral agreement was reached in August 1979 that China

*

would set up a Visa Office of the MFA in Hong Kong.

This was

on the understanding that it would confine its activities

to the issue of visas, that it was not to be construed as a representative office of the Chinese Government, and that its

establishment would not affect the functions of the NCNA

office. The opening of the Visa Office has been delayed

on account of our unwillingness to meet Chinese demands

for formal diplomatic privileges.

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