CONFIDENTIAL

4. THE PROVISION OF FUNDS TO BUY DEPARTURE SEEMS TO US QUITE DIFFERENT TO THE PROVISION OF SHIPS TO CARRY THE TRAFFIC SO GENERATED. THE FORMER IS LEGAL THE LATTER EXECRABLE.

A

5. THE SYSTEM DESCRIBED IN PARA 3 ABOVE DOES NOT, SO FAR AS WE KNOW,

OPERATE IN NORTH VIETNAM, WHERE EXIT PAYMENTS ARE LOWER AND ARE MADE BY EMIGRANTS WITHOUT OUTSIDE ASSISTANCE. 80 PER CENT OF OUR

SMALL BOAT ARRIVALS THIS YEAR HAVE BEEN FROM THE NORTH.

6. I HOPE THE IMPLIED ACCUSATION THAT THE VIETNAM REFUGEE PROBLEM IS JUST A HONG KONG RACKET WILL BE FIRMLY REFUTED. I CANNOT BELIEVE THAT THE TENDENTIOUS VIEW REPORTED IN PARAGRAPH 9 OF WASHINGTON'S TUR..COMES FROM THE CONSULATE-

GENERAL HERE.

7. WASHINGTON MIGHT LIKE TO TELL THE AMERICANS THAT (1) WE HAVE NO EVIDENCE OF THE CHINESE ADDING ILLEGAL IMMIGRANTS TO BOATS FROM VIETNAM AND (11) WE WOULD WELCOME ANY EVIDENCE FROM THEM ON THIS OR THE 'NETWORK'' TO WHICH THEY REFERRED. IT IS HARD TO SEE WHY THE STATE DEPARTMENT SHOULD FEEL INHIBITED ABOUT PASSING ON ANY INFORMATION AVAILABLE TO THEM.

MACLEHOSE

FILES HK & GD SEAD NAM D

COPIES TO:

HONG KONG GO.OFFICE

LONDON

UND

FED

PS

PS/LPS

PO/R. BLAKER PS/PUS

MR. CORTAZZI

MR.MURRAY

2

CONFIDENTIAL

Share This Page