TNAG-1037-FCO40-1287-Future-of-Hong-Kong-1981 — Page 69

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CONFIDENTIAL

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Unofficial Representation

10. The local office of the New China News Agency (NCNA) has acted

as the unofficial channel of communication between Hong Kong and

Chinese Governments since 1949, but with increasing open-ness 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.

CONFIDENTIAL