CONFIDENTIAL

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objection in Hong Kong to the title and No 10 and the Crown Office

are aiming to complete gazetting formalities by 22 September, in

time for Sir Lawrence to take his seat in October.

TRAVEL DIFFICULTIES

19.

For some time we have been trying to persuade the Austrians

and Germans to waive their visa requirements for Hong Kong passport

holders. We shall continue to do this.

More recently,

Spain has re-imposed a visa requirement and we are considering

at what level representation should be made.

VIETNAMESE REFUGEES

20. The number of Vietnamese refugees in Hong Kong remains at

about 15,500, not including those who had previously been resettled

in China. The number has increased slightly in recent weeks.

21. The UK quota of 10,000 has not yet been filled. 238 have been

selected for resettlement here but cannot come until September/October

because of lack of capacity in reception centres. Over and above this,

there are some 200 places out of the 10,000 quota to be filled.

22.

When the Governor discussed this issue in July with Lord

Carrington and Mr Ridley, the Secretary of State said that it would be

very difficult indeed to get agreement to accept more refugees given

the rate of unemployment in Britain. It was agreed, however, that

the situation must be watched closely and that the FCO would keep

in touch with the Governor, on the need for, and the timing of action.

There have been no significant developments in Hong Kong, Vietnam

or the UK since then.

CONFIDENTIAL

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