CONFIDENTIAL
011140
MDHIAN 0923
decision if we wish, at a time of our choosing (though this would of course need careful handling).
But
9. The Director of Immigration is trying to arrange an early meeting with his counterpart in the MPS to discuss the scheme. we also need to apply diplomatic pressure. Subject to your views and those of Peking, the best way forward might be for Peking to register with the MFA as soon as possible our formal response to the Chinese position, perhaps supported by parallel action with the Chinese Embassy in London. Such approaches might draw on the following points:
disturbed to learn that MPS no longer intends that one-way permit scheme should operate on agreed basis, as it has successfully for over ten years.
HMG/HKG cannot agree that quotas should be set unilaterally. HKG has a responsibility to regulate entry into Hong Kong, including by PRC nationals. Chinese Government has always accepted this. It is recognised in the Joint Declaration (JD 165); and was acknowledged by the Chinese side at JLG XV (when Ambassador Guo said that "measures ... to control the entry or settlement in Hong Kong of mainland residents can be finalised through consultation between the two sides"). Cannot imagine that Chinese authorities are really suggesting that we now disregard JD and JLG commitments, on this important and sensitive issue.
If this were the case, consequences would be very serious. Excellent co-operation on immigration-related matters has been of crucial importance over the years in maintaining stability and confidence in Hong Kong.
If a decision of this kind became publicly known in Hong Kong, it would cause alarm. The reasons for it would be misunderstood. Hong Kong people would simply not believe that MPS were in a better position than HKG to judge Hong Kong's capacity to absorb new settlers.
Grateful for urgent confirmation that Chinese authorities remain willing to operate this scheme on its long-established agreed basis. In that event, we do not think it would be difficult to reach early agreement on the quota which we should be operating at present.
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