cst.ps/2jm29.6/drft

My Haswrth of

PA

CONFIDENTIAL

HKB 243/11

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SHIET SECRETARY

TO THE

TREASURY

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Mr Meloven

in Statheruck in Cussie, (M)

Treasury Chambers. Parliament Street, SWIP 3AG

in Found HKD

The Rt Hon Sir Geoffrey Howe QC MP Secretary of State for Foreign Affairs Foreign & Commonwealth Office

King Charles Street

London

SW1A 2AH

29 June 1989

Dear Foreign Secretary,

VIETNAMESE BOAT PEOPLE IN HONG KONG

Thank you for your minute of 25 June in which you explain the need for a bilateral scheme for repatriating non-volunteers to Vietnam.

I recognise that the costs of such a scheme are likely to have to fall on the UK, though I am glad that you expect the Hong Kong Government to agree to share the burden with us in equal parts. But I am not clear what assurance we have that news of repatriation payments will not encourage still more Vietnamese to attempt flight in the hope of being repatriated. It might not be a reasonable reaction on their part but their choices may not be much influenced by reason. I take it that this will be an aspect of the proposals which you will be exploring very fully with Nguyen Co Thach and that you will also be impressing upon him the importance of the measures set out in the Comprehensive Plan of Action for the Vietnamese authorities to take for deterring clandestine departures. You will also, no doubt, be arranging to monitor the working of the scheme and verify that it is not having perverse effects.

On that understanding I am ready to agree in principle to provide, if necessary, from the 1989-90 Reserve, up to around £4 million for the current-year costs of the scheme. But after a year there must be a full Review to establish the cost-effectiveness of scheme before I would be prepared to offer any further expenditure on this.

I am copying this letter to all Members of OD (K) Sir Percy Cradock and Sir Robin Butler.

Yours sincerely. P. Warless

ff JOHN MAJOR

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[Approved by the Chick Secretary and

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