CONFIDENTIAL

such people into the workforce.

The US experience of having only 5% of the Indo-Chinese refugees unemployed (because they worked in non-fixed wage rate service industries) could not be repeated in Australia. Further, the prospect of the US economy slowing down was very worrying.

6. Mr Engledow said he did not see Australia being able to

raise their quota for refugees this year. His Minister had problems with Malaysia and Indonesia. There were seaworthy boats there which could set off for Darwin if an organised programme bringing refugees to Australia was closed down. Whilst Mr MacKellar may wish to concentrate on Thailand or Hong Kong, Australia was as reluctant to offend Malaysia or Indonesia, as Hong Kong, China. The Indonesians could easily send on the boat people to Darwin, to Australia's embarrassment. Mr Lindenmayer said that there were 30,000 refugees waiting in the Anambas Islands, who could easily come unchecked to Darwin if there was no substantial programme for them. Mr Simington said that refugees were being cleared from Indonesia quite quickly but the process was breaking down. Mr Blackie said that apart from the 2,500 boat people from Vietnam, Australia had received the same number from East Timor after the

Indonesian take-over. What worried Australia was the 3 million

Chinese in Indonesia who might also set their sights on Australia.

7. Sir Jack said that Australia's decision on a quota of refugees was her own but in the spirit of Geneva and humanity, she should help Hong Kong. If Australia offered nothing more, he would be extremely disappointed. Mr Engledow said that Australia already had 18,000 testimonies to her humanity. Many of the 70,000 migrants a year were economic "cripples" and only a country with a strong humanitarian instinct would take them. Further, Australia took in students from South East Asia who "could not" return home, as well as overstaying tourists. Sir Jack emphasised that Hong Kong only wanted a fair share of Australia's boat refugee quota. So far, 67.3% had come from

Malaysia

CONFIDENTIAL

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