1
CONFIDENTIAL
1. I shall be submitting separately some ideas on attainable objectives for our handling of the situation in Hong Kong, to follow up Mr Gillmore's minute of 18 May. But there is little prospect of providing early relief, and we are bound to face requests for financial assistance which it would be politically unwise to refuse on the grounds that no funds are available. therefore support the action proposed, which, as Mr Paul points out, has already been agreed by Ministers in principle.
2. The purpose of the draft letter is to put the Chief Secretary on notice, rather than to make a specific bid for additional funds. It should be noted that the result would be that the less attractive kind of expenditure (on detention centres etc) would fall to the FCO rather than the ODA vote. I see no alternative to this; the ODA have shown considerable flexibility (eg, over the recent £6 million for Pillar Point), but it would be very difficult for them to justify the use of their funds for some of the contigencies mentioned in the draft minute.
I
19 May 1989
Cc:
PS/Lord Glenarthur
PS/Mr Eggar
PS/PUS
Mr Gillmore
Mr Blatherwick
Mr Crabbie, RMD
Mr Colvin, SEAD
Mr Brenton, UND Mr Paul, HKD
CONFIDENTIAL
R J T McLaren