CONFIDENTIAL

C 7. On (c) the Hong Kong Government have provided us with a good

account of what can be done to equip refugees for resettlement.

can build on this.

We

But

8. We have considered whether it would be sensible to delay further action with the Home Office on our resettlement case until the position on the deterrent effect of the new policy is clearer. the Secretary of State has observed that there is a good case for not waiting too long after the change of policy before making a move

on resettlement. I agree.

Now is the right psychological moment in international terms. There will be growing pressure in Hong Kong for action, particularly in view of the arrival figures of the last month. Miss Lydia Dunn pointed out to Lord Glenarthur last month that HMG too often gave the impression of acceding only reluctantly and at the last moment to Hong Kong's requests: this greatly reduced the dividends gained in Hong Kong. And I am conscious that unless action with colleagues is not launched very soon it risks hanging

fire until after the summer break.

Cohen

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