CONFIDENTIAL

7. Our primary concern over Vietnam is the outflow of refugees

which is putting a great strain on Hong Kong (and causing major

difficulties elsewhere in South-East Asia).. We must keep up the

pressure on Vietnam to improve conditions. I do not see aid

as an effective lever.

8. We need American help over the refugee problem in Hong

Kong where there are over 30,000. I hope that the US

Administration will ensure that Hong Kong is given resettlement

places in line with its intake of refugees, which is now the

highest in the region.

9. The emphasis of our policy in South-East Asia is to support

the ASEAN countries who are justifiably apprehensive at the

threat from the North

especially Vietnam

SOUTH-EAST ASIAN DEPARTMENT

18 May 1979

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CONFIDENTIAL

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