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On ii): he would need to give an undertaking that HMG will do all it can to help Hong Kong, both through action on the diplomatic front and (to the extent that this is appropriate and feasible) through

continuing resettlement. This is the minimum that can be said. It does not amount to an explicit new commitment above and beyond the 468 which we are taking over the two years up to May/June 1989. But it implies that this will not be all. If he is pressed, the Secretary of State could not be more specific about a new commitment but might say that we are considering actively what the implications for HMG would be of all the policy options open to the Hong Kong Government: this includes the resettlement aspect.

On iii) the Secretary of State could say that the UK already makes a substantial contribution to UNHCR funds and that we will be discussing with that organisation the allocation of resources to Hong Kong in order to deal with the scale of the problem.

Even these minimalist forms of words will of course need to be cleared with Ministerial colleagues.

International implications

10.

We have been giving further thought to this aspect. I attach Mr Williams' minute of 6 May which examines the implications of a new policy for UNHCR and the resettlement countries. We shall draw Hong Kong's attention to the need to take these points into account. We shall also need to consider what supporting action would have to be taken internationally: this would have to involve explanation of the new policy; a further campaign for the resettlement of those still classified as refugees; and the stepping up of international pressure on Vietnam to agree to repatriation under acceptable conditions. I will be submitting further thoughts on this aspect

very shortly.

Further action

I recommend that the Secretary of State send a minute to the Prime Minister and colleagues informing them of the situation in

11.

CONFIDENTIAL

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