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accepted that the establishment of a non-governmental trade office (which might be able to facilitate although not to issue visas) would provide minimum grounds for Chinese opposition. Detailed discussions with the Hungarian Government are now being pursued through our Embassy in
Budapest.
The
4. We have also been urging the Hong Kong Government to further relax their visa regime for Soviet and East European nationals. Until recently only a handful of visas were issued to such visitors at any one time. The first step towards liberalisation was taken last October when the
numerical restriction on business visitors was dropped. Hong Kong Government have now reviewed their visa policy once more and concluded that further liberalisation is justified in the case of certain countries (Hungary, Czechoslovakia, Poland and Romania). Like us, they have decided to treat East European countries on a case by case basis, depending inter alia on their progress towards multi-party democracy and the security threat from their external intelligence organisation. The outcome of Hong Kong's latest review would bring their visa policy more closely into line with that of the UK in relation to countries such as Hungary, Czechoslovakia and Poland although the situation is evolving rapidly and our own visa policy is currently under review.
5. Hong Kong's proposals nevertheless pose certain problems:
(i)
The introduction of an accelerated visa procedure for Romania as well as Hungary, Czechoslovakia and Poland would give the wrong signal to the Romanians at the present time. It would also be out of step with the views of our EC partners. EED therefore recommend that Romania should be reinstated in the restrictive
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