RESTRICTED
FM UKMIS GENEVA
TO IMMEDIATE FCO
TELNO 408
OF 291323Z JUNE
INFO IMMEDIATE HONG KONG
INFO PRIORITY TOKYO
RESTRICTED
H&B 243/11
ГОР СОРY COPY Q DIST ?
75
157472
MDHIAN 1315
HONG KONG TELNO 2112 (NOT TO TOKYO): VIETNAMESE BOAT PEOPLE: FINANCE
1.
WE HAVE DISCUSSED WITH UNHCR THEIR PLANS FOR CONCLUDING THE
USUAL SIX MONTHLY FINANCIAL AGREEMENT TO COVER UNHCR'S SHARE OF FOOD AND RELIEF ITEM FOR VIETNAMESE REFUGEES IN HONG KONG, AGAINST THE BACKGROUND OF HONG KONG'S OWN FINANCIAL DIFFICULTIES AND THE SERIOUS
SHORT-FALL IN UNHCR FUNDS. THE POSITION IS BLEAK.
2.
FIRST, UNHCR HAVE TOLD US (AND WE HAVE CONFIRMED WITH THE JAPANESE MISSION) THAT 11 MILLION WHICH THE JAPANESE VICE FOREIGN
MINISTER ANNOUNCED AT THE ICIR ON 13 JUNE HAS NOT (NOT) BEEN EARMARKED FOR THE EXPANDED HONG KONG APPEAL. THE ONLY MONEY SO FAR
RECEIVED IN RESPONSE TO THE EXPANDED APPEAL IS THE UK CONTRIBUTION
OF 6 MILLION POUNDS. THE JAPANESE PLEDGE (PAYMENT IS LIKELY TO BE DELAYED FOR SOME MONTHS) HAS BEEN ALLOCATED TO UNHCR'S INDO-CHINESE GENERAL PROGRAMMES AND IS, THEREFORE, FOR USE THROUGHOUT THE REGION. UNHCR WILL HAVE TO DRAW ON THESE MONIES TO PAY FOR THE COSTS OF
OTHER OPERATIONS IN SOUTH EAST ASIA AS WELL AS THE NEW ACTIVITIES
RELATING TO THE ESTABLISHMENT OF SCREENING ETC IN THE ASEAN COUNTRIES.
3.
UNHCR'S GENERAL FINANCIAL POSITION IS EXTREMELY SERIOUS. THEY
HAVE 4 MILLION ONLY IN THE BANK, SUFFICIENT FOR THE LESS THAN A WEEKS ACTIVITY WORLD-WIDE. THEY CANNOT, THEREFORE, CONCLUDE AN AGREEMENT WITH HONG KONG TO REIMBURSE EXPENSES, EITHER FOR THE PAST SIX MONTHS OR THE SECOND HALF OF THE YEAR. UNHCR REMINDED US THAT
HONG KONG/UNHCR STATEMENT OF UNDERSTANDING MADE CLEAR THAT THEIR
COMMITTMENTS WERE SUBJECT TO THE AVAILABILITY OF FUNDS. THESE HAVE SIMPLY NOT MATERIALISED SO FAR.
COMMENT
4.
UNHCR IS VERY CONCERNED ABOUT THE CONSEQUENCES FOR HONG KONG BUT CANNOT ENTER AGREEMENTS TO REIMBURSE HOST GOVERNMENTS WITHOUT GUARANTEED FUNDING. THEY ARE MAINTAINING ALL THEIR EFFORTS TO ATTRACT FUNDS FOR THE EXPANDED HONG KONG APPEAL. THEY HOPE THAT WE
1
PAGE
RESTRICTED