FCS/89/204

CONFIDENTIAL

CHIEF SECRETARY TO THE TREASURY

HKB

243 / 11

Hong Kong: Vietnamese Boat People

1. At the OD (K) meeting on 4 October the Sub-committee concluded that John Major should pursue with you the outstanding funding questions related to the problem of Vietnamese boat people in Hong Kong

2. In your letter of 9 August, you indicated that you were content with our proposals for expenditure of

£4.5 million on emergency accommodation; £5 million on a

Regional Processing Centre for Refugees; and £1.3 million

on the repatriation of non-volunteers to Vietnam.

3.

The £4.5 million for emergency accommodation has been

transferred to the Hong Kong Government and disbursed.

It now seems unlikely that the Regional Processing Centre will materialise on the scale originally envisaged, if at

all. If it does, it will be on a much reduced scale and

our contribution is unlikely to be more than £2 million in this financial year. We will revert when the position

is clearer. No money has yet been spent on the

repatriation of non-volunteers because none have yet been

returned: the amount required in this financial year will depend on our success in establishing a substantial

programme.

/4.

CONFIDENTIAL

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