CONFIDENTIAL

062007

48

MDHIAN

COMPLETION OF THE CPA. HE THOUGHT IT INCONGRUOUS THAT HONG KONG, GIVEN THE CONCERNS OF ITS PEOPLE OVER THEIR OWN FUTURE, SHOULD BE PRESSING FOR THE ENDING OF FIRST ASYLUM. HE MADE THE POINT

THAT THE US CONTRIBUTION TO SOLVING THE VBP PROBLEM IN RESETTLE-

MENT TERMS OVERSHADOWED THE EFFORTS OF ALL OTHER COUNTRIES

INCLUDING THE UK.

4.

THE GOVERNOR EXPLAINED THAT RESETTLEMENT WAS NO LONGER A FEASABLE SOLUTION FOR THE VAST MAJORITY OF VBP WHO, AS NORTH VIETNAMESE, DID NOT QUALIFY FOR RESETTLEMENT. SOLOMON (ASSISTANT SECRETARY, EAST ASIAN AND PACIFIC AFFAIRS) ASKED WHAT OTHER MEASURES COULD BE TAKEN TO HELP HONG KONG. E.G. FURTHER UNHCR

ACTION UNDER THE CPA. THE GOVERNOR REFERRED TO THE NEED FOR

STRONGER UNHCR COUNSELLING HE SAID IT WAS ALSO IMPORTANT THAT

UNHCR SHOULD MEET ITS FINANCIAL OBLIGATIONS TO HKG. BAKER

ASKED IF A PHILIPPINE RPC WOULD HELP. LYMAN (HEAD OF REFUGEE

PROGRAM BUREAU) SAID THE PHILIPPINES WAS CONDUCTING A FEASIBILITY STUDY. THE GOVERNOR SAID SENDING A SIGNIFICANT

NUMBER OF REFUGEES TO A RPC WOULD HELP BUT SETTING IT UP WAS

PROVING A SLOW PROCESS. LYMAN ASKED ABOUT VIETNAMESE ACTION ON VOLUNTEERS AND NON-VOLUNTEERS. THE GOVERNOR SAID THEY SEEMED WILLING TO SPEED UP ON VOLUNTARY REPATRIATION WHICH WOULD NOT

SIMPLY ENCOURAGE VOLUNTEERS BUT ALSO MAKE IT CLEAR THAT FOR THOSE SCREENED OUT RETURNING TO VIETNAM WAS THE ONLY OPTION. THEY WERE ALSO PREPARED TO CONTEMPLATE THE RETURN OF THOSE WHO DID NOT ACTIVELY VOLUNTEER DESPITE SOME NERVOUSNESS ABOUT THE PROCESS.

5.

THE GOVERNOR DREW ATTENTION TO THE HUGE US INVESTMENT IN HONG KONG. HE SAID THAT WHEN SINO-US RELATIONS IMPROVED, IT WOULD BE HELPFUL IF THE US COULD STRESS TO THE CHINESE THEIR CONTINUING INVOLVEMENT AND INTEREST IN HONG KONG'S FUTURE.

6. BAKER ASKED IF OUR CURRENCY WAS STILL LINKED TO THE US DOLLAR. THE GOVERNOR CONFIRMED THIS WAS SO AND EXPLAINED HOW THE LINK HAD STOOD US IN SUCH GOOD STEAD FOLLOWING THE EVENTS

OF JUNE 4. IT WAS PRECISELY FOR THIS SORT OF INSTABILITY THAT

THE LINK HAD BEEN DESIGNED. THERE HAD BEEN NO RECENT QUESTIONING FROM THE US TREASURY ABOUT THE NEED FOR A LINK. ALL SEEMED CONTENT THAT IT SHOULD STAY.

ACLAND

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