with the scale of the problem and with our special responsibility

for Hong Kong. Our objective is to stimulate a significantly

increased offtake by the resettlement countries. We believe that

an appropriate target would be to aim for up to a doubling of the

present rate of offtake. We aim to achieve this by bilateral

contacts with the main resettlement countries; through action in

the multi lateral EC and ASEAN; and through the co-operation of

UNHCR. Our contacts with officials in the key countries give

grounds for believing that a commitment of the right magnitude by

the UK would achieve a substantial gearing effect'.

6.

There is substantial pressure in Hong Kong for us to make a

move. The issue is being seen as an important test of our

commitment to the territory. In this country there is a

significant body of opinion which believes we should do more

including the voluntary agencies who might be expected to take

Internationally, attention is now focusing on all

aspects of the boat people problem including resettlement: there

are moves to hold an international conference on the problem next

spring. The time is ripe for us to act.

that view.

7. The Chinese have recently expressed concern that this problem

should not be allowed to linger beyond 1997. They will welcome

action by us which will provide a lead to the international

community in resettlement, in addition to the lead we have taken

on repatriation.

CONFIDENTIAL

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