CONFIDENTIAL

[With officials, ExCo, OMELCO]

Understand pressures on Hong Kong from new influx have been

enormous. Hong Kong has coped with great efficiency.

Colleagues readily endorsed new policy proposed by Hong Kong

Government. First reactions in Hong Kong?

We are doing all we can to help new policy work.

Taking every opportunity to press Vietnamese to accept their people back. Secretary of State/Co Thach: representations in Hanoi,

London, Geneva.

Encouraging other governments (resettlement countries, EC,

ASEAN) to do the same. They are giving growing support. Pressure

is building up on Vietnam.

Supporting UNHCR's action with Vietnamese over repatriation.

No easy solution. But some evidence that Vietnamese feel

under pressure on a number of fronts (political, economic):

recognise need to show greater flexibility in their policies.

New resettlement?

Recognise resettlement remains one important aspect of our

response to problem. Our existing programme of resettlement is continuing. We are continuing to examine all aspects of the

problem. I shall report views on my return.

We take every opportunity to encourage others to step up their

levels of resettlement.

More financial support

Recognise that costs for Hong Kong have increased

dramatically. We have brought to attention of UNHCR strength of feeling in Hong Kong: in contact with them over future allocation of

resources to Hong Kong.

But UNHCR is under pressure from many sources. Difficult to

change the balance dramatically in Hong Kong's favour.

We already make substantial contribution (£17 million) each

year to UNHCR for use amoung refugees.

CONFIDENTIAL

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