CONFIDENTIAL

between the two governments, are due to start within a few weeks. This is a delicate matter for the Governor, who will have to obtain the agreement of the Executive and Legislative Councils to

the increase in the Hong Kong contribution.

Vietnamese Refugees

9.

One immediate problem is the resettlement of nearly 4,000 Vietnamese refugees who have been temporarily accommodated in Hong Kong since early May. We and the Hong Kong Government have approached some twenty other governments on their behalf and it looks as though permanent homes may be found for more than half of the refugees by the end of the summer, mainly in the United States, France, Canada, Australia, Denmark and Austria. However, at least 1,500 will probably remain unsettled. Some of these may eventually return to Vietnam; but the Hong Kong authorities, who have so far permitted about 50 to settle permanently, may have little option but to increase the number they are prepared to allow to stay in the Colony. The Home Office are still considering applications from 73 of the refugees who wish to settle in the United Kingdom.

Hong Kong & Indian Ocean Department

23 June 1975

CONFIDENTIAL

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