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significant number of the many thousands who may wish to leave Hong Kong, but there

are countries in the world that are not as overcrowded as the United Kingdom, and

where it should be possible, after sensible discussion, to make substantial re-

settlement agreements.

As we have seen with the Vietnamese refugees, countries are increasingly reluctant

to take penniless refugees, but there is no reason why the potential refugees from

Hong Kong should be penniless. Apart from entering into discussion with possible

host countries, such as Australia, Brazil and the Philippines, I believe that we

should now begin to accumulate a substantial resettlement fund for possible use in

the mid-1990s.

It is obviously difficult for the Hong Kong Government to direct substantial amounts

of revenue to such a fund while the British Government is negotiating with the

People's Republic, but it is arguable that the establishment of such a fund could

have a beneficial effect on the discussions themselves. It could be the Hong Kong

equivalent of the air raid shelters under Peking that the Chinese Communists used

to show their visitors with such pride.

I therefore suggest that after June 30th 1984 the Royal Hong Kong Jockey Club

charitable and community donations should be diverted into a Resettlement Fund.

The annual amount involved which is currently running at about 350 million Hong

Kong dollars would seem to me to be just about the right amount to invest in a

contingency fund in the early years. The Hong Kong Government should be expected

to make good the contributions to numerous charitable organisations that now depend

on the Royal Hong Kong Jockey Club. This could be met by diverting funds from the

various capital expenditures and public works programmes which I see are running at

13 billion Hong Kong dollars in 1983/84, and which will clearly have to be scaled

down sharply in the years ahead if proper agreements cannot be reached with the authorities of the People's Republic.

I shall be putting forward this suggestion to the Hong Kong Government, to the

Foreign Office and to Downing Street, but I would very much welcome your preliminary

views as a leading member of the community in Hong Kong, as a member of Exco, and

not least

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as a Steward of the Jockey Club.

M

Sir Philip Goodhart

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