All bilateral, UK assistance to Vietnam was cut off

in July 1979 because of the human rights implications of

the exodus of boat-people (and also becuase of the invasion

of Cambodia).

44,000 boat-people fled Vietnam last year

and we have continued to oppose EC aid and (including

food aid) and obstruct multi-lateral development aid pro-

posals where possible (on the grounds of the misallocation of

national resources in favour of the armed forces). At the

end of the initial emergency in Cambodia we stopped contri-

buting to the UN relief programme within Cambodia. Given

last year's food production levels, it may now be wound up.

intimal

3. The French have preferred a conciliatory line, and

offered Vietnam 10,000t of food aid to mark Nguyen Co Thach's

Paris visit in April last year. The European Commission

also have discretion to contribute direct or through

voluntary agencies; and in December persevered with a grant

of 300,000 e.c.u. in response to a UN appeal following

Typhoon Nancy which struck central Vietnam in October

this despite our objections at Political Director level

and those of ASEAN members whom they made point of con-

sulting. ASEAN Ministers may complain that this move gives

Vietnam the wrong signals.

a

4. Since 1979 the Indo-Chinese refugee problem has been

managed by UNHCR on the principle of international burden-

sharing. We have taken 16,000 chiefly from Hong Kong and

on the basis of a quota which is now filled. We continue

/to

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