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to be possible, with the Christmas break coming up, until after

the Lord Privy Seal returns from Hong Kong and the Far East.

This visit will in any case provide the Lord Privy Seal and

yourself with an opportunity to review the problem with the

Governor and a copy of Sir Philip's letter has been included

in the brief on Vietnamese refugees for the visit. In the

meantime, we should send a holding reply to Hong Kong explaining

what we are doing.

5.

Paragraph 8(b) of the letter mentions Mr Davies' letter

of 9 October. We had prepared a submission on this and agreed it

with SEAD. However when we consulted Mr Ford, the Hong Kong

Commissioner in London, he asked that no further action be taken

for the time being. (We had at that stage concluded at official

level that there could be no question of a further quota for

Vietnamese refugees from Hong Kong). Mr Ford said that the Hong

Kong Government wished to reconsider whether they could make a

direct or indirect contribution towards the cost of resettling

the refugees in the UK. I understand that they have now concluded

that such a contribution is not possible. We should therefore

warn Hong Kong that although Ministers have yet to be consulted

the financial difficulties will not help the situation.

6.

In a teleletter of 9 December, Mr Davies asked about refugees

rescued by those British flag carriers who still had not been

brought here. The Home Office had not been told that there was any

urgency in their cases and we did not know there was any hold up.

The Home Office have arranged for them all to be brought here as

/soon

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