CONFIDENTIAL

VIETNAMESE BOAT PEOPLE IN HONG KONG

Draft speaking note

The Chief Secretary will have seen Mr Powell's letter of 5 June,

(attached) recording the Prime Minister's view that we should offer

more financial assistance to help Hong Kong cope with boat people.

Foreign Secretary strongly agrees: this would be very well

received in Hong Kong at this difficult time. Boat people crisis is desperately serious. Mood in Hong Kong has been further aggravated

by events in China.

Immediate agreement to full package recommended in the Foreign Secretary's minute of 2 June would enable conversion of Lei Yue Mung barracks to go ahead without delay. Would provide accommodation for

7,000 people.

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Governor will be meeting ExCo tomorrow. Important to confirm agreement now to achieve maximum impact.

Other expenditure implications would still need to be

considered by do on

8 June

ده

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CONFIDENTIAL

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