CONFIDENTIAL

UNHCR programme providing modest assistance, probably

largely in kind rather than cash, to returnees and their

immediate communities. This would be in line with the

way minds are moving in UNHCR and in other Western

governments. We would urge our partners to make a

contribution.

The Hong Kong government would also be

ready to seek authority to make matching contributions of

their own. In any event the sums

small.

involved would be

8.

If you are content that we should proceed on that

basis, we shall tell the Vietnamese that we are ready for

a second round of talks. By convention this should be in

the other capital, London (or in Hong Kong). The Hong

Kong Government are understandably concerned that the

holding of the talks in the territory could give rise to

unrest among those Vietnamese detained pending

repatriation. I therefore believe we should be ready to

offer London as the venue, recognising that this offers

the Vietnamese a modest diplomatic gain and seeking to

exert the maximum leverage in return. This would offer

an opportunity for us to put across very forcefully our

views on broader Vietnamese policies.

9. On a separate aspect of the problem, I am discussing

with Douglas Hurd what further contribution we might make

towards the resettlement of those boat people already in

I shall minute Hong Kong who are regarded as refugees.

on that issue in due course.

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