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BACKGROUND

CONFIDENTIAL

3.

The attached paper, agreed with SEAD, UND, Hong Kong and UKMis

Geneva, sets out factually the situation, predicts how it is

likely

to develop if matters are left as they are, and examines all the

options of which we have been able to think, setting out

advantages and disadvantages.

4. The general prognosis (paras 12-13) is that unless there is

successful action to contain the problem, the situation is likely to

deteriorate. On reasonable assumptions it could deteriorate quite

rapidly between now and 1988. We could eventually face rioting in

the camps: such a situation, besides creating difficult security

problems and much human misery, would certainly result in widespread

criticism or condemnation of HMG. For these reasons a policy of

inaction at this stage

seems neither viable nor sensible.

5. On the other hand there are no easy options, nor can we say

with any certainty that any of the courses of action which have been

identified will be successful in containing the problem. A full

solution to the problem requires success both in increasing the rate

of departures and in decreasing the rate of arrivals. If the latter

cannot be achieved there is some danger that better resettlement

rates will actually stimulate more refugee arrivals.

Increasing resettlement

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1984 83

88?

6.

There is no doubt that the key to any action by HMG to persuade

resettlement countries to increase offtake is action ourselves to

take more refugees from Hong Kong. Without this we are in an

impossible position to persuade other countries to do more.

Although our record since 1975 is not a bad one (we have accepted

19000) in the last 3 years resettlement here has fallen drastically

(we have accepted less than 500 from Hong Kong in that time) and

other resettlement countries are aware of this.

7.

We therefore consider that we should make a major effort to get

a further resettlement programme in this country started. The

CONFIDENTIAL

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