-2-

5.

Main country of resettlement, US, is closing

the door, at least to Hong Kong.

HONG KONG'S POSITION

6.

Hong Kong can not continue accepting VRS if no

prospect for resettlement. Already overcrowded. While

natural growth of population low, have to accept

substantial legal migration from China.

Also, dealing

harshly with ethnic Cantonese entering illegally.

Little sympathy among Chinese in Hong Kong for

Vietnamese.

1.

Answer to local criticism is that VRS here to

be resettled elsewhere.

OPTIONS OPEN TO HONG KONG

(a)

8.

no more.

Resettlement

Will continue to press for more resettlement.

But unlikely to be successful, particularly as UK taking

Could Lord Belstead press for an additional

Then some possibility that other countries will

be a little more sympathetic.

1,000?

(b)

Closed Camps

9.

Will continue with closed camps. But at present rate of arrivals and departures no room for more after

autumn 1983 at the latest.

10.

No evidence that acting as a deterrent.

CONFIDE

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