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camps, we have not made any announcement; and our current thinking is that we would not do so until just before the repatriation takes place.

(iii) We originally planned to send back the first group on 17

July and the Vietnamese agreed in principle to aim for this date. But the timing has slipped, partly because it has taken longer to negotiate terms with Vietnam; and partly because Hong Kong have found it difficult to find suitable candidates. Hong Kong had originally identified 23

suitable people : that number has dwindled to 12 (and

falling) as some individuals have had second thoughts about

acquiescing. The problem over assembling a first group has been explained to the Vietnamese.

(iv) The United States Administration remain opposed to what we

are doing. Mr Baker made this clear to the Secretary of

State on 30 July. To some extent this is based on

misunderstanding and a different perspective (see para 17

below). Mr Gillmore's recent discussions with American

officials in Paris offer a glimmer of hope that we may be

able to persuade them to accept our policy. As long as the

Americans oppose us, there can be no hope of enlisting the

cooperation of UNHCR.

(v)

Tensions in the camps in Hong Kong, no doubt in part

exacerbated by misleading reports about what we have agreed

with the Vietnamese, are leading to increasing unrest.

These different aspects of the problem are examined in greater

detail below.

Historical Background to the Present Position

7. Since the fall of Saigon in 1975 vast numbers of people have

left Vietnam by boat. Many have arrived in Hong Kong, which has provided temporary refuge to over 150,000 people (of whom about

100,000 have been resettled in the West). The first crisis occurred

in 1979, when the exodus began to reach unmanageable proportions,

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