NABAAK (2)

CONFIDENTIAL

making clear publicly that they would be prepared to provide

home for Hong Kong people if worst came to worst;

supporting Hong Kong's participation in international economic organisations eg inclusion in November ministerial meeting of Asia/Pacific Economic Forum. Do not see why Chinese should

object to this: Hong Kong has full autonomy in conduct of its

external commercial relations.

VIETNAMESE BOAT PEOPLE

Situation in Hong Kong worsened considerably since our meeting in

July. Over 56,000 in camps, 32,000 arrivals this year, of which

4,000 in August.

Problem reaching crisis point: rioting in camps, protests by

local residents, outbreaks of cholera.

Voluntary repatriation programme has been given reasonable period

of time to produce results. But only 264 have returned.

Time has run out for Hong Kong. Barring dramatic improvement in

results of voluntary programme, see no alternative but to move to

mandatory repatriation

Understand US sensitivites. Prepared to try and wait until SC3,

provided other governments represented at SC3 willing to accept that

Hong Kong constitutes a special case and has no choice but to

implement mandatory repatriation.

Willing to argue at SC3 that other first asylum countries should

give voluntary programme a chance before following Hong Kong's

precedent.

- No question of repatriating boat people without assurances of humane treatment/no punishment on return. Vietnamese have given

commitment on this.

CONFIDENTIAL

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