SECURITY CLASSIFICATION

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DSR 11C (Revised 5/87)

25. This burden has now become intolerable for Hong

Kong. That is why we have been making concerted efforts

to alleviate the burden as quickly as possible. We will

not shirk our responsibility for Hong Kong: we are

redoubling our efforts to find a solution.

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26. In recent months we have committed over £17m to

help: £6m towards the capital costs of a new refugee

centre at Pillar Point; £2m in support of UNHCR's

operations in Hong Kong; and £4m for emergency

accommodation, including tents and huts. We have also

announced our readiness to contribute £5m towards the

cost of a Regional Processing Centre to which all

refugees from Hong Kong and the region could be

transferred quickly while they await resettlement.

And

on the resettlement front, we have undertaken to accept

2000 more refugees from Hong Kong over the next three

years : that's the fastest rate of intake since the

crisis of the early eighties.

27.

When I attended the International Conference of Indo

Chinese Refugees in Geneva last month, I urged the

Conference to accept the reality that all those boat

people who do not qualify as refugees must find their

future in Vietnam. We were able to secure general

recognition of this fact. I am glad to say that

important progress is now being made in our bilateral

talks with the Vietnamese on repatriation. We have a

long way to go before we achieve a complete solution,

but I believe that we have finally turned the corner.

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