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HKB 2+3/11
FROM:
G F Griffiths
Finance Department
DATE:
26 June 1989
96
A
Mr Paul
Hong Kong Dept
VIETNAMESE BOAT PEOPLE IN HONG KONG
1.
Our Departments are working together at desk level to finalise a list of suitable projects which Finance Department will shortly attempt to clear with HM Treasury as being acceptable calls on the money originally agreed in John Major's letter of 6 June to Sir Geoffrey Howe for converting barracks in Hong Kong into temporary accommodation for some of the boat people.
2.
When we apply to the Treasury for a formal call on the Reserve, there is a £0.25 million discrepancy that we will need to explain. You will recall that John Major agreed a call of up to £4.25 million for this cause and that somewhere along the line a mistake occurred which caused the Governor in Hong Kong, to announce to the media after his visit to No. 10 an aid package of £4.5 million. I believe the Governor's office is now trying to hold HMG to paying up to £4.5 million as announced.
3. Unofficial contacts with the Treasury indicate that the mistake is perceived as ours with the clear implication that we ought to finance the difference. We would have great difficulty in meeting this unforeseen commitment. I believe your Department is of the opinion that our briefing to No.10 quoted the correct figure of £4.25 million, that somehow the briefing was corrupted in the Prime Minister's office, and that the Govenor read out from a factually incorrect brief produced by No.10. If this is the case, it is important that we do all we can to substantiate the facts. Can I ask you to look into this as a matter of urgency? Copies of any documentation supporting our case would be particularly useful.
CRO
G F Griffiths
Finance Department 210 6100 OAB 2/115
G14ABE
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