OUR ANSWER TO LOCAL CRITICISM OF THE CONTRASTING TREATMENT OF

ARRIVALS FROM CHINA AND VIETNAM IS THAT THE VRS ARE HERE TEMPORARILY PENDING RESETTLEMENT. THIS LINE IS INCREASINGLY DIFFICULT TO MAINTAIN NOW THAT 23 PERCENT OF THOSE IN HONG KONG HAVE BEEN HERE FOR MORE THAN FOUR YEARS AND THEIR RESETTLEMENT PROSPECTS ARE MINIMAL.

(D) IN TERMS OF RESETTLEMENT HONG KONG HAS PROBABLY DONE BETTER

FOR ITS SIZE THAN ANYWHERE ELSE IN THE WORLD. IT HAS ABSORBED 14,000 INDOCHINESE BETWEEN 1975 AND 1979 AND CONTINUES TO ACCEPT FAMILY REUNION CASES (340 SINCE 1979).

COST.

LOCAL CRITICISM ALSO FOCUSES ON THE HIGH COST OF PROVIDING EVEN TEMPORARY ASYLUM. SINCE DECEMBER 1978 OUR POLICY OF PROVIDING VRS WITH FIRST ASYLUM HAS COST HGK U.S. DOLLARS 72 MILLION OR POUNDS 49 MILLION. IN ADDITION UNHCR HAS SPEND U.S. DOLLARS 36 MILLION (POUNDS 24 MILLION) AND VOLUNTARY AGENCIES U.S. DOLLARS 9 MILLION (POUNDS 6 MILLION). THIS YEAR, BECAUSE OF THE HIGHER COSTS OF CLOSED CENTRES, HKG'S BILL WILL BE U.S. DOLLARS 14 MILLION (POUNDS 9.5 MILLION) AND UNHCR'S MAY BE U.S. DOLLARS 4 MILLION (POUNDS 2.7 MILLION).

OPTIONS OPEN TO HONG KONG.

RESETTLEMENT.

HONG KONG WILL CONTINUE TO PRESS POTENTIAL RESETTLEMENT COUNTRIES AND THE UNHCR FOR MORE PLACES. OPEN SQUARE BRACKETS. THE ABSENCE OF A UK QUOTA CREATES PROBLEMS IN THIS RESPECT. CLOSE SQUARE BRACKETS. HT HS UNLIKELY THAT A SUBSTANTIAL NUMBER OF NEW PLACES WILL BE FOUND NOW WITHOUT AN INTERNATIONAL INITIATIVE ON RESETTLEMENT. NEVERTHELESS, THE UNHCR HAS ADVISED THAT HKG SHOULD USE ITS LONDON, BRUSSELS, GENEVA, WASHINGTON AND NEW YORK OFFICES TO APPLY INCREASING PRESSURE ON RESETTLEMENT COUNTR LES

TO INCREASE SUBSTANTIALLY THEIR OFFTAKE FROM HONG KONG. MEANWHILE, SECURITY BRANCH IS KEEPING UP THE PRESSURE ON THE REPRESENTATIVES OF RESETTLEMENT AND POTENTIAL RESETTLEMENT COUNTRIES IN HONG KONG. ALL ARE ENCOURAGED TO SEND VINS-TORS FROM THEIR GOVERNMENTS TO SEE THE CENTRES IN HONG KONG.

CLOSED CENTRES.

IN AN ATTEMPT TO DETER REFUGEES FROM COMING TO HONG KONG, CLOSED CENTRES WERE INTRODUCED ON 2 JULY 1982. THERE ARE INDICATIONS THAT THE NEW POLICY #S HAVING SOME DETERRENT EFFECT, AS THE ARRIVAL RATE IN 1983 SHOWS. BUT AT THE FORECAST RATE OF ARRIVALS AND DEPARTURES THERE WILL BE INSUFFICIENT ROOM IN THE CENTRES AFTER MID-1984, UNLESS NEW CENTRES ARE PROVIDED. THE CURRENT SMALL NUMBER OF DEPARTURES TO RESETTLEMENT COUNTRIES FROM THE CLOSED CENTRES (ONLY 1,357 HAVE BEEN ACCEPTED OUT OF THE 7,161 WHO HAVE ARRIVED SINCE 2 JULY 1982) MAY WELL LEAD TO TROUBLE IN THE CENTRES, AS THE OCCUPANTS REALISE THEY ARE FACED WITH INDEFINITE INCARCERATION.

CONFIDENTIAL

/REPATRIATION

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