RESTRICTED

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finances, they may well return to the charge. We would

provide fands to cover

look to the Home Office to meet the costs (estimated

by Dr von Arnim at about US$300,000) if it is decided

mut

that, HMG should pay them. The ODA understandably do not regard meet these travel costs as a form of development

assistance and are therefore not in a position to provide

funds from the aid budget. Nor are the Diplomatic Wing

or the Hong Kong Government in a position to pay.

4.

It will of course be somewhat embarrasing if, when

we have completed our interdepartmental consideration

of this question, we have to confirm to UNHCR that HMG

will not pay these expenses. It would be particularly

unfortunate if UNHCR, unable to meet the cost from

UNHCR

General Brogramme funds, launched an international Special Appeal to raise money for this purpose.

have been helpful to us in our diplomatic initiative to

encourage other countries to accept refugees from

Hong Kong.

Against the background of UNHCR's financial

crisis we shall not be making any additional unearmarked

contributions to UNHCR's

current financial year.

General Brogrammes in UNHCR's

Nor have we announced a

significant increase in our unearmarked contributions

to the general programmes for the new financial year

(1986).

5.

We would not want you to raise the subject formally

with UNHCR in Geneva at this stage. But it would be

helpful to us in our consideration of the question here

to have your comments on Dr von Arnim's letter in the

light of any informal contact you may have with UNHCR.

In particular, it would be interesting to know whether

it is really the case, as Dr von Arnim claims in his

letter, that all resettlement countries except the UK

and France pay for the transportation of resettlers.

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