G.F. 326

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Situation in U.K.

5.

Mr. Clift said that under the circumstances of high unemployment and shortage of housing, the prospect for a further quota was poor. The Home Office had already indicated that houses coming on-stream after the current quota was completed would not be able to sustain an inflow of more than 50/100 refugees a month. Mr. Whitelaw was against a further quota, and Lord Carrington would have to consult the Prime Minister for a final decision. Meanwhile, the Home Office had agreed to delay for as long as possible any final decision about a further quota, as an adverse decision would have serious consequences for Hong Kong.

Tactics and Timing of Approach to Cabinet

6.

Mr. Clift said that the process of submission and consideration by Cabinet should not take more than one month. S for S said that as the current U.K. quota would be more or less completed by March/April 1981, he foresaw mounting pressure from February 1981 onwards for a definite decision by the U.K. Government. After some discussion, it was agreed that an approach to the F.C.O. should be made in late- January/early-February 1981. S for S would be in London in early- January 1981 for further discussions.

7.

With regard to tactics, Mr. Clift advised that it would be necessary to work out a package whereby the U.K. Government could be seen to be discharging its obligations made at the Geneva Conference while substantially reducing its financial outlay and commitments for use of public housing. In this connection, any scheme that would delay the actual intake into U.K., e.g. by keeping U.K. selected refugees in Hong Kong for a longer period, would be helpful. After some discussion, it was agreed that :-

(a)

(b)

(c)

A quota of 2,000 places (i.e. representing 16% of the refugees left in Hong Kong by 1.7.1981) should be asked for. The timing for taking the quota should be left flexible, to be agreed between the HKG and HMG.

Consideration should be given toasking the Home Office to release the 500 places under the current quota reserved for ship rescues.

Hong Kong should consider ways and means of reducing the rate of offtake of refugees to U.K. to match the availability of houses in U.K. In this connection, consideration should also be given to a language training programme in H.K. (such as the U.S. programme in Argyle 4 Camp) and the possibility of a financial contribution (direct or indirect) to help fund the U.K. resettlement programme. Advice on this latter point would be sought from the Commissioner, London Office.

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