TNAG-1095-FCO40-1345-Visas-for-Chinese-nationals-visiting-Hong-Kong-1987 — Page 89

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Mr Morrice

Mr. Shitt

CONFIDENTIAL

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CHINESE VISA OFFICE IN HONG KONG

1.

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345

RECEIVED IN REGISTRY NO.5ges for the

You asked for a note on where we stanappaoprivileges for the

Visa Office.

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B

C

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E

F

G

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DIRK OFFICER INDEX

REGISTRY

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Peking Telno 232 of 31 March contains the revised draft memorandum that Peking would like to put tothe Chin Items (d) to (f) would be conditional on points made in paragraphs 3 and 5 of the draft. It is in all essential points identical to the draft memorandum presented to Liang Geng by Mr Clift on 18 December, excepting:

(i)

(ii)

3.

paragraph 5 (c) of our original draft is dropped in deference to the Chinese negotiator Mrs Xu's request (Peking Telno 118 of 2 March, paragraph 6).

a possible addition to paragraph 2 of our draft, providing for the Head of the Visa Office or his representative to be present in the event of a search of Visa Office premises. Hong Kong (their Telno 373 of 2 April) would naturally prefer not to concede this point.

The Chinese have shifted noticeably since their first draft memorandum, which began this exchange, on 7 November. In this they asked for the following additional exemptions:

(i) from tax on 'estates';

(ii)

(iii)

from tax on goods bought in, imported to or exported from Hong Kong for official and private purposes;

from luggage search, except under special circumstances.

Their further draft of 27 February (Peking Telno 119 of 2 March) dropped points (iii), and (ii) as regards goods for private use.

4.

The Chinese response to Mr Atkinson's representations on 27 March (Peking Telno 231 of 31 March) made no further retreats but showed a desire to 'expedite' the matter. Sir E Youde (Peking Telno 24 to Hong Kong on 2 April) clearly did not get this impression when the subject was raised by Song Zhiguang (Assistant Foreign Minister). Sir E Youde's suggestion will require legislative amendments which we and Hong Kong have opposed all along.

CODE 18-77

SS 8/78

3 April 1981

A W Friar

Hong Kong & General Department

Bu

one week

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CONFIDENTIAL