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CONFIDENTIAL

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in Minh Hai Province and knew of Chinese from two aborted ship departures being

detained on An Nhon Island in Ben Tre Province. Most ethnic Chinese are

reportedly unemployed and have to buy food on the black market. They have

not been moved to the New Economic Zones. Those registered for departure before

the moratorium are now in limbo, most of them refusing to accept a refund

of their fees in heavily discounted Vietnamese currency.

5.

Ethnic Chinese in Southern Vietnam have told their relatives overseas

that they may be able to leave in late February. The departure charge will

be up to eight taels of gold if they leave from the South, but may be reduced

by half from the North. Many had expected to be allowed to leave in October, but

this date was postponed to 1 November, then 1 December, and is now expected by the

refugees to be mid-February. More than half a million ethnic Chinese are estimated

to be still in Vietnam and money agents in Hong Kong are continuing to accept

money for departure payments and living expenses from Chinese in Hong Kong

or the USA for remittance or transfer to their relatives in Vietnam.

A possible major venture?

An Overseas Chinese refugee shipping syndicate in Hong Kong has

continued with its contingency planning to collect ethnic Chinese from Vietnam

and now has a 9,000 ton ship waiting in the Gulf of Siam off Kampuchea, whilst

negotiationS are conducted with the Vietnamese authorities concerning the

possible transport of about 3,000 persons from two earlier aborted ship

departures (M.V. SEAVIEW and HIGH GLORY).

Assessment:

7.

The weakening of the northeast monsoon in early March is likely

to encourage the clandestine departure of more ethnic Vietnamese with access to

boats. Many may come to Hong Kong. Large numbers of ethnic Chinese are

unlikely to arrive unless the moratorium is broken, as they can no longer

obtain boats. Political and economic necessity may however force the

Vietnamese authorities to expel the remaining ethnic Chinese gradually, attributing

the departures to low level corruption and their inability to police the country's

long coastline, rather than admit that the moratorium has ended.

boats are available and earmarked in the south for this purpose.

Many small

CONFIDENTIAL

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