The Hong Kong Government have been very conscious that if they were.

to breach the first port of call principle in order to admit the Huey Fong

refugees, others might be encouraged to adopt the same action. You will

be aware from your visit to Hong Kong that there is real and very under- standable concern among the people of Hong Kong about this possibility.

The Hong Kong Government nevertheless accepted throughout that the Huey Fong could not be allowed to remain off Hong Kong indefinitely, even though they have kept the ship provisioned and have provided hospital treatment

for those needing it. Though conditions on board the ship have not been

intolerable, the anchorage would not be safe in bad weather.

It was against this background that the Hong Kong authorities

yesterday told the master that the Hong Kong Government had given him

adequate provisions to reach Taiwan and that they would not continue to reprovision the Huey Fong indefinitely and he should now continue his voyage. If, however, he decided to enter Hong Kong waters the Government would not prevent him from doing so, though he would be subject to Hong

Kong law and might be liable to prosecution. At the same meeting it was

made clear to a representative of the refugees that if the Huey Fong came

into Hong Kong those on board would be processed by the Immigration

Department and the UN High Commissioner for Refugees would do his best to

arrange for their resettlement.

I have heard this morning that the master has decided to enter Hong Kong. The preliminary processing of the refugees will begin

tomorrow morning.

immediate

Now that the. / problem has been dealt with the first four of the five conditions mentioned in the third paragraph of your. letter will

certainly apply, namely:

1. That the Huey Fong refugees should be given temporary refuge pending their resettlement in other countries.

2. That they should take their place in the queue of the existing 5,000

refugees in Hong Kong awaiting resettlement.

/3.

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