CONFIDENTIAL
D
E
The
(b) HMG is in any case now publicly committed to a sum for
emergency accommodation of £4.5 million (not £4.25 million). This is because the Press Notice prepared by No 10 for the Governor's use after his meeting with the Prime Minister on 8 June erroneously included the figure of £4.5 million as the total sum available. briefing letter provided by the FCO for that meeting specified the correct sum. The Treasury have however indicated that they would be prepared for an extra £0.25 million to be found from the FCO's unallocated provision.
Argument
7.
HMG's contribution to emergency accommodation in Hong Kong is seen there as a litmus test of our commitment to the territory in difficult times. The figure of £4.5 million is public and has been used by Ministers on repeated occasions. It would be politically very damaging indeed if we were to claw back the £1.5 million which the Treasury are now seeking.
8.
It is true that the Chief Secretary left it to officials to agree the final sum. But the boat people crisis has worsened since then. And the overall political situation in Hong Kong has deteriorated following events in China. The Treasury give no weight to these political factors. Moreover, arguably they are in effect penalising the Hong Kong Government for having identified more cost effective means of providing emergency accommodation (ie more places for the same money).
Appeal
A R Paul
I have spoken to the appropriate Underewsky i
in the Treaty,
who confins that a new case must be put to the
Chief Seeschen
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