CONFIDENTIAL

(The shortfall has emerged for a number of reasons;

some have been

resettled elsewhere, some do not meet the criteria). We welcome

this offer, but the Home Secretary proposes also that the Secretary of State join him in resisting any attempts to extend the numerical

limit over 468. We need to decide how to respond.

4.

a)

Arguments for pressing for an additional commitment now

The refugee situation in Hong Kong has deteriorated since our commitment was made in May 1987. Only a further commitment would represent a response commensurate with the scale of the problem.

b) Some governments (the USA in explicit terms) have indicated that they will do more if (and only if) we acknowledge our direct responsibility for Hong Kong and show the way.

c)

If the situation continues to deteriorate the calls for action

by the Hong Kong Government will increase. They may lead to Hong Kong threatening to abandon the first asylum policy or to introduce an even stricter regime for arrivals. We would be badly placed to respond to such threats.

d) In Hong Kong/UK terms, our attitude to the Vietnamese refugees is viewed as a touch-stone of British commitment to Hong Kong.

Vietnamese

e) Lord Glenarthur plans to visit Hong Kong in June. refugees have been a major, contentious issue on each of Lord Glenarthur's two previous visits. It would improve the atmosphere if a new initiative could be announced in June.

5.

Possible forms of additional commitment

The Hong

a) extension of the May 1987 scheme beyond 468 places. Kong Government have indicated that an additional 300 refugees currently in the camps meet the original family reunion criteria.

b)

acceptance of some or all of the 133 refugees who refused a previous offer to resettle in the UK. (30 of these also meet the criteria in a) above).

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