CONFIDENTIAL

HKB 2+3/11

134755

MDHIAN 0115

CONFIDENTIAL

FM HONG KONG

TO IMMEDIATE FCO

TELNO 1144

OF 10123OZ APRIL 89

INFO PRIORITY UKMIS GENEVA

10

MY TELNO (116 VIETNAMESE BOAT PEOPLE: FINANCE

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WE HAVE EXAMINED IN MORE DETAIL THE QUESTION OF FINANCE FOR

ADDITIONAL ACCOMMODATION FOR BOAT PEOPLE. AS YOU ARE AWARE THE

PRESSURE IS STEADILY MOUNTING. ARRIVALS THIS MONTH HAVE NOW REACHED

610 AND WE KNOW THERE ARE AT LEAST A FURTHER 130 IN THE WAY. WE HAVE ALREADY REACHED THE POINT WHERE WE HAVE NO ACCOMMODATION IMMEDIATELY

AVAILABLE FOR FURTHER ARRIVALS AND WILL HAVE TO COMMISSION FERRIES FOR THIS PURPOSE RIGHT AWAY. LOOKING AHEAD, EVEN ON A CONSERVATIVE ESTIMATE THAT ARRIVALS THIS YEAR WILL NOT BE MUCH ABOVE THOSE IN 1988 WE SHALL NOT (NOT) BE ABLE TO MANAGE WITHOUT AUTHORISATION

FROM FINANCE COMMITTEE TO PROCEED WITH STAGES 3 AND 4 OF THE

WHITEHEAD PROJECT. EVEN IF THIS IS GIVEN, WE SHALL ALSO NEED TO PROVIDE TEMPORARY ACCOMMODATION IN THE INTERIM, FOR EXAMPLE, BY THE TEMPORARY USE OF LO WU BARRACKS, THE RETENTION OF ERSKINE BARRACKS AND MORE EXTENSIVE USE OF FERRIES.

2"

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I UNDERSTAND THE PROBLEMS WHICH MINISTERS FACE IN DECIDING ON THE ALLOCATION OF AID FUNDS FOR THIS PURPOSE, PARTICULARLY FOR LONGTERM DETENTION CENTRES. IT MAY HELP IF THE PROBLEM IS PRESENTED WITH EMPHASIS ON ITS EMERGENCY ASPECTS AND ON THE NEED FOR TOLERABLE ACCOMMODATION FOR ALL VBP ARRIVALS, IRRESPECTIVE OF WHATEVER EVENTUAL STATUS IS ACCORDED TO THEM. IN ADDITION YOU MAY WISH TO PUT TO MINISTERS THREE DIFFERENT OPTIONS UNDER WHICH FINANCIAL

SUPPORT FROM HMG WOULD BE FORTHCOMING :

(A) HMG WOULD PAY FOR EMERGENCY TEMPORARY ACCOMMODATION (FERRIES, LO WU, ERSKINE AND ANY SITES IDENTIFIABLE AS OVER- SPILL AREAS FOR FERRIES IN THE EVENT OF STORM CONDITIONS). WE

CALCULATE THAT THESE COSTS OVER THE PERIOD APRIL TO AUGUST

WOULD AMOUNT TO HK DOLLARS 50 MILLION.

(B) HMG WOULD MEET THE COST OF HALF OF THE ADDITIONAL

FACILITIES REQUIRED UNDER WHITEHEAD STAGES 3 AND 4. THE CONTRIBUTION WOULD BE HK DOLLLARS 80 MILLION. THIS WOULD ADMITTEDLY INVOLVE THE PROVISIONS OF FUNDS FOR DETENTION CENTRES

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CONFIDENTIAL

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