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was envisaging assigning some of any enlarged outflow under the 7-point programme to allocation for direct settlement in the US under the 14,000 per month total. He had in mind a figure of the

In his view this should be order of 7% or 1,000 direct departures. coupled with a strong public statement explaining that ordinary refugees did have a chance of getting out of Vietnam "through the system", which would act as a disincentive toward more people taking to the boats. Failing that, the policy would be tantamount to acquiescing in refugees continuing to risk their lives on the high seas.— The only alternative was for the US to make some further increase above 14,000 per month. That would be very difficult in domestic political terms. In this connection Holbrooke drew attention to recent press reports of friction between Vietnamese refugees and local American communities eg the murder of a Texas fisherman by Vietnamese in a dispute over crabbing rights and the subsequent burning of Vietnamese boats and firebombing of a Vietnamese caravan (see enclosed clippings); and more recently anti-Vietnam refugee manifestations by the KKK.

10. Holbrooke said he was very conscious of Hong Kong's case for fair treatment. So far as Vice-President Mondale's visit to Hong Kong was concerned, the very presence of the Vice President in Hong Kong would be a major event attracting great publicity with his visit to a refugee camp. We should be careful not to "over- worry" the problem. He wanted to assure you that Sir Murray Maclehose

Holbrooke did not however explicitly was "constantly in his thoughts". endorse your suggestions that Mondale should make a public statement

(As against that, along the lines indicated in paragraph 2 above.

I ought to record that at lunch the same day Mike Oksenberg (NSC) was more positive on this score and undertook to try to generate action along those lines).

CC:

Political Adviser

Hong Kong

Chanceries:

Hanoi

Singapore

Kuala Lumpur

Manila Bangkok Peking

Doms tin Bim

PJ Weston

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