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entered Hong Kong illegally after resettlement in China and are

to be repatriated to China. There are, however, some signs of

a renewed outflow from Vietnam although Malaysia and Thailand are

still taking the brunt of it. At the same time, numbers from China

arriving in Macao and Hong Kong have greatly increased in recent

weeks. Action is being taken with the Chinese.

13. UK quota of 10,000 agreed at Geneva in 1979 has not

14.

yet been filled. Hong Kong is concerned that UK commitment should

continue so that other countires, especially the US, maintain own

resettlement programmes. Prime Minister has made it clear that

in present circumstances a further quota is out of the question.

There have recently been two rescues at sea of substantial

numbers of refugees by British-registered ships making for Hong Kong.

We have had to tell Hong Kong that while these refugees can be

accepted in the UK they must be included in the remainder of the

10,000 UK quota. The political atmosphere here would not allow them

to be excluded from the quota. Hong Kong will find this difficult

to accept.

We shall need to reassure the Governor that we will press

Hong Kong's interests.strongly on ways of tackling ship rescues once

the quota is exhausted.

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Hong Kong and General Department

22 June 1981

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