5.

HMG.

CONFIDENTIAL

-2-

Lord Carrington said that money was not the main problem for

It was largely a matter of unemployment. The present political atmosphere was not favourable but he would fight hard on Hong Kong's behalf. For the moment, however, he thought it best not to raise the question of a future quota with the Home Secretary provided that the extra 700 refugees were agreed. Sir M MacLehose agreed that when he saw Mr Whitelaw on 11 March he would only mention Vietnamese refugees and not press the question of a future quota. It would be best to wait for that until after the Secretary of State's visit to Hong Kong.

Distribution:

Private Secretary PS/Mr Blaker

PS/Mr Luce

PS/PUS

Sir E Youde

Mr Donald

Mr Adams

HKGD

FED

SEAD

CRD

Governor, Hong Kong

CONFIDENTIAL

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