CODE 18-77

Mike Carbine

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HKB 2+3/11

Reference

FILE

77

Finance Department

VIETNAMESE BOAT PEOPLE IN HONG KONG : FINANCIAL ASSISTANCE FROM

HMG

1.

Hong Kong telnos 2055 and 2125 provided us with a list of projects for emergency accommodation for boat people which they propose should be financed from the sum agreed by the Treasury in the Chief Secretary's letter of 6 June. I understand that your department is taking separate action with the treasury to resolve the descrepancy between the sum agreed in that letter and the sum announced by the Governor of Hong Kong after his meeting with the Prime Minister on 8 June.

2.

3.

Hong Kong's suggested projects are:

a) Whitehead 2(C): HKD 30 million, to be spent on site preparation and the purchase of prefabricated buildings from Holland. Hong Kong have said that the latter were quite simply the best value for money and the quickest options available to them; we have nevertheless alerted them to the possibility that the Treasury might question this particular use of HMG funds.

b) A tented camp at Sek Kong. Details of costs totalling HKD 14 million are listed in para 2(b) of HK telno 2125.

c) High Island Camp. Costs totalling HKD 14.8 million are listed in para 2 (C) of HK telno 2125.

d) Soko. Costs for a reception centre on the Soko Islands have yet to be worked out.

In addition to the above costs, I have already passed to you invoices relating to the two shipments of tents which have been despatched to Hong Kong. The bill from the MOD for their 50 tents and 50 shelters will arrive in due course: this is likely to be in the region £150,000 £175,000.

4.

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HK telno 1987 asked if we would also be prepared to meet certain costs incurred through the MOD as a result of work carried out by the garrison in Hong Kong. The sterling total is in the region of £25,000. This should be added to the expenses detailed above.

5. I attach copies of HK telnos 1987, 2055, 2125 and FCO

I should be telnos 1367, 1373 and 1378 for ease of reference. grateful if you could obtain Treasury agreement that those

COHAMW

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