MEETING OF OD(K):

CONFIDENTIAL

WEDNESDAY 4 OCTOBER

VIETNAMESE BOAT PEOPLE

S PEAK ING NOTE

(a) Background

Problem in Hong Kong now acute.

33,000 arrivals in 1989 alone. 38,000 likely eventually to be

screened out.

Сол

ava-al

-ar forges]

Total of 56,000 people. Almost

'Tie A Chow

Serious overcrowding/tension in camps. Problems at Tai A Chau. Growing frustration and anger in Hong Kong. LegCo will resume on 11

October: pressure to abandon first asylum likely to mount

thereafter.

Severe problem of land and funds to house them. Cost to Hong

Kong: £109 million since 1979. Estimated cost in current financial

year £60 million. (Keeping them in detention very expensive.)

(though numbers fluctuate ins people charge their minds) 264 volunteers have returned so far. 700 more in pipeline. 240 of these should go back in next 2 weeks. But clear that voluntary

channel alone cannot solve the problem.

Harch Probbur as crush can front-

Without effective deterrent to departures, risk that we could

face a further influx next year of same proportions as 1989. That

could entail additional costs for building new accommodation of c£ 24 million. Hong Kong likely to look to HMG to foot the bill.

Proposal

Log Go. numbers the timing to w/hold Bank's already.

Abventring

It is against that I ground that I have reached uncleseron

Hence our proposal that we should begin mandatory returns as soon

as possible after SC3. Suggest target date 31 October, ie one week

before TRH The Prince and Princess of Wales' visit to Hong Kong (7-10 November).

TEXACC

CONFIDENTIAL

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