CONFIDENTIAL

If

1985 of indirectly elected members, the Legislative Council (LEGCO) has become much more assertive. LEGCO members, who see themselves as representing the anger and frustration of local people, have the power to block all further expenditure on boat people by voting against the administration's proposals in the Finance Committee.

that happened, the Governor would have no alternative

recourse to funds. He cannot override their decision.

3 May, in an unprecedented vote, 11 members out of 46 voted against a proposal for new expenditure on boat people. Before long the votes against could be in a majority.

On

10. We have been doing all we can to try to contain the problem and to help Hong Kong cope with it. We have been pressing the Vietnamese to take effective measures to stop the departures; we have been urging the Chinese to dissuade boat people who call at Chinese ports en route from Hong Kong from continuing their journey; and we are working for a

successful outcome to the International Conference on Indo-Chinese Refugees in June, which we hope will lay the basis for a comprehensive long term solution, including the repatriation to Vietnam of all those who do not qualify as refugees. But it will take time before results become

apparent. We are working for agreement to early mandatory repatriation as the only effective means of tackling the problem of non-refugees and deterring further departures. But other governments (including the United States and Vietnam) as well as UNHCR are insisting that only volunteers should be sent back at this stage. There is therefore a real danger that the outcome of the Conference will be seen in Hong Kong as failing to match up to the seriousness of the problem. That will serve only to aggravate the situation in the territory.

CONFIDENTIAL

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