CONFIDENTIAL

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the centre will work and what it will cost. In particular, we shall need to know whether Hong Kong will be allowed to participate

in the scheme: present indications are that the Indonesians see it

as exclusively for ASEAN countries.

8

We doubt whether many other governments will, for similar reasons be able to offer specific financial pledges, though most governments concerned will support the general idea of establishing an island centre. The Americans and Australians

are likely to be in the lead; the French have not far been very keen on the proposal.

9

There are obvious drawbacks in the scheme but it may well be that a workable project will emerge. We should, therefore, do best to keep our options open, particularly given our concern over Hong Kong's refugee problem. Mr Cortazzi expressed this concern in his letter of 2 May to the Indonesian Ambassador.

RECOMMENDATION

10

I recommend that Mr O'Brien be instructed on the lines of the attached draft telegram. SEAD, HKGD, Home Office and ODM

concur.

9 May 1979

cc: PS/PUS

Sir A Parsons

Mr Cortazzi

SEAD

маджиил

MK O Simpson-Orlebar United Nations Department

HKGD

MVD

News Department

CONFIDENTIAL

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