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CONFIDENTIAL

VIETNAMESE REFUGEES : ESSENTIAL FACTS

Present Position

1. On 2 March, less than 18,500 Vietnamese refugees in Hong Kong

awaiting resettlement. This does not include some 2,400 who have

settled in China, entered Hong Kong illegally and are due to be

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

increase in outflow from Vietnam.

Recent Developments

2. Americans did not raise new UK quota during Prime Minister's

visit. However, Governor will be pleased to learn that Cabinet

is likely to reinterpret original decision and exclude all

Vietnamese refugees rescued by British-registered ships from existing

quota of 10,000; will now be reserved exclusively for Hong Kong.

Home Office team at present in Hong Kong instructed to select

additional 700. This will give more time to consider issue of

additional UK quota, now not needed until mid-summer.

New Quota

3.

However, presentational

The Governor telegraphed the Secretary of State suggesting

that he should announce new UK quota of 250 per month from April

to end of 1981, during his visit to Hong Kong.

advantages in Hong Kong outweighed by tactical considerations in UK.

Not going to be easy to get Cabinet agreement to even very modest

quota of, say, 1,250 until end of year, though this may be needed

to persuade Americans and Canadians to continue their own resettle-

ment programmes. Tactically more appropriate to go back to Cabinet

after visit to Hong Kong. Breathing space provided by additional

700 makes this easier and even more preferable. Also danger that

Home Office will make link between additional quota and Hong Kong's

demands on Nationality.

Hong Kong and General Department

6 March 1981

CONFIDENTIAL

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