?

}

CONFIDENTIAL

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D

but our Chargé d'Affaires' assessment is that although the Japanese will not give any undertaking to allow the refugees to disembark until the very last moment, they will ultimately do so.

4.

The Rudd Bank's owners, Bank Line (also owners of the Sibonga and Roach Bank) have remained in very close contact with us throughout, and have made no attempt so far to raise the question above the working level. It is, however, possible that their Chairman, Lord Inverforth, may write again to the Prime Mini IBPC ar to another Mini«ter as he did in the base of the Sibonga and Roach Bank, and it is probable that he will do so if, contrary to the Chargé d'Affaires' assessment, the Japanese

do cause substantial difficulties over disembarking the refugees.

The owners have so

far suffered only marginal financial loss in

this case: UNHCR has agreed to meet the care and maintenance

costs of the refugees from the date of their rescue (4 August)

and the handling of the boat in Shanghai and Qingdao (Tsingtao) does not appear to have been impeded. On leaving Chinese waters

the Rudd Bank is to be delivered to Japanese time charterers,

Mitsui OSK Lines, in Yokohama. But this charter will only commence

when the vessel is clear of refugees. The company will therefore

start to incur substantial financial penalties if there is any

delay in off-loading the refugees. In that case, the Government

will come under extremely heavy pressure from the owners and the

shipping industry to act quickly to minimize the loss either by

giving a guarantee to the Japanese if that is what is needed to

secure Japanese agreement, or possibly even to agree to accept

the refugees directly to the UK for processing and possible

resettlement elsewhere, as in the case of the Sibonga and Roach Bank.

The case has not previously been formally brought to the attention of Ministers, although relevant private offices, including

No 10 Downing Street, have received copies of the major telegrams.

5..

Under the Cabinet decision of 12 July, any refugees from

the Rudd Bank settling in the United Kingdom would fall within the

10,000 overall quota at Hong Kong's expense. This raises

certain

CONFIDENTIAL

/presentational

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