[we

We are considering his appeal for extra funds].

11. The special statement on Indo-Chinese refugees issued in

Tokyo on 28 June commits governments significantly to increase

their contributions to Indo-Chinese relief and resettlement, by

making more funds available and by admitting more people, while

taking into account the existing social and economic circumstances

in each of their countries.

VIETNAM COLLABORATES WITH THE INTERNATIONAL COMMUNITY

12.

At present we can place little reliance on Vietnamese

declarations of readiness to collaborate with the International

Community. They attended the UN High Commissioner for Refugees

conference in Geneva last December and the Jakarta conference

in February to consider an island processing centre for refugees.

But the flow of boat people has not abated: it has in fact

increased.

AGREEMENT BETWEEN THE VIETNAMESE AND THE UNITED NATIONS' HIGH COMMISSIONER FOR REFUGEES

13.

The agreement covers only people who have had offers of

resettlement because of links with relatives abroad. But this'

category is so small (it represents only about 10 days' worth of

refugees at the present rate of exodus) that it cannot be

regarded as making a worthwhile contribution to solving the problem

Nor does it show that the Vietnamese intend sincerely to

cooperate with the United Nations High Commissioner.

WILL WE CUT OFF AID TO VIETNAM?

14. As the Prime Minister said on 3 July, we shall certainly

not be giving more aid.

WILL WE TERMINATE THE CONTRACT TO ASSIST THE CONSTRUCTION OF FOUR SHIPS FOR VIETNAM BY AID FUNDS?

15.

Unfortunately it would cost us more to cancel the contract

than it would to complete it.

/MALAYSIAN

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