CONFIDENTIAL

agreed to make up to £5 million available for costs directly related

to mandatory repatriation (ea transport. per capita pavment in kind)

sufficient to return at least 10,000 boat people. of this last sum we have Treasury approval to spend up to £1.3 million in this financial year.

13. The policies proposed in this paper are likely to incur further

costs. We propose that a further sum of up to £5 million should be

made available for financial assistance linked to the reintegration

programme. In addition, in order to help the Hong Kong Government cope with those boat people already in Hong Kong or likely to arrive in the future, we should be ready to contribute significantly to the

costs. The Hong Kong Government advise that they will need about

£5.6 million for necessary improvements to the emergency

accommodation which they began this summer (enhancement of security

and structural reinforcement against typhoons).

14. My officials have been discussing these matters with the

Treasury.

CONCLUSIONS

15. Colleagues are invited to:

(a) agree that we should continue to make preparations for the

repatriation of a first group of non-voluntary returnees soon as possible after SC3; a final decision to proceed will obviously be

looked at in the light of the outcome of that meeting;

(b) agree that I should pursue the funding questions in paragraphs

12 and 13 above with the Chief Secretary.

Foreign and Commonwealth Office

2 October 1989

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CONFIDENTIAL

JM

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