to relieve them of the residue.

It would no doubt also be helpful

if HMG and resettlement countries were to offer some degree of

financial assistance in recognition of the continuing burden that

first asylum countries would have to bear.

18.

If Mr Luce agrees with the general approach taken in this

submission, I shall write to the Hong Kong Government, setting out

our analysis of the current prospects and proposing that we should pursue the suggested strategy in conjunction with the US, Australia

and other countries involved in the discussions in Geneva.

We may

then be able to send instructions to UKmis Geneva with the aim of

keeping up the momentum and developing a consensus on future action.

CONFIDENTIAL

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