14171
COMMENT
HKCB 243 111
CONFIDENTIAL
FM HONG KONG
TO DESKBY 071100Z FCO
TELNO 3695
OF 071000Z NOVEMBER 89
16
YOUR TELNO 2343: VIETNAMESE BOAT PEOPLE: UK FINANCIAL ASSISTANCE
1. SINCE THE COMPLETION OF OUR FEASIBILITY STUDIES ON THE TAI A CHAU. TELEGRAPH BAY AND SOUTH LANTAU PROJECTS WE HAVE CONTINUED OUR SEARCH FOR MORE DOST EFFECTIVE OPTIONS. A SITE HAS BEEN IDENTIFIED ON HEI LING CHAU WHICH MIGHT PROVE TO BE A VIABLE ALTERNATIVE TO THE TAI A CHAU PROJECT. A FEASIBILITY STUDY IS UNDERWAY AND WE HOPE TO HAVE THE RESULTS BY THE END OF THE WEEK. AT THIS STAGE IT SEEMS POSSIBLE THAT WE COULD CONSTRUCT A DETENTION CENTRE AT HEI LING CHAU FOR 20,000 VBP AT A LOWER CAPITAL AND RECURRENT COST THAN THE EQUIVALENT PROJECT AT TAI A CHAU. IT IS TOO EARLY TO BE SURE ABOUT THIS BUT IT IS IMPORTANT THAT YOU SHOULD BE AWARE OF THIS POSSIBILITY BEFORE YOUR DISCUSSIONS WITH TREASURY OFFICIALS. HEI LING CHAU FEASIBILITY STUDY CONCLUDES THAT THIS IS INDEED A VIABLE OPTION. WE SHALL LET YOU HAVE DETAILS OF THE PROJECT AND A SCHEDULE OF COSTS AS SOON AS POSSIBLE.
IF THE
2. WORK ON THE NEW RECEPTION CENTRE AT TAI A CHAU IS CLOSE TO COMPLETION, THIS WILL PROVIDE ABOUT 1200 PLACES FOR NEW ARRIVALS WHICH AMOUNTS TO A DOUBLING OF OUR RECEPTION CENTRE CAPACITY. WE HAVE BEEN UNABLE TO COMPLETE THE WORK BECAUSE WE ARE VERY SHORT OF FUNDS AND BECAUSE THE PIER ON THE ISLAND IS BEGINNING TO DISINTEGRATE. THE RECEPTION CENTRE PROJECT IS QUITE DISTINCT FROM THE FULL DEVELOPMENT OF THE ISLAND. IF WE WERE TO PRESS AHEAD WITH THE FULL DEVELOPMENT OF TAI A CHAU THE RECEPTION CENTRE WOULD BE SUBSUMED IN THE LARGER SCALE WORKS. IF, HOWEVER, WE TAKE UP THE HEI LING CHAU OPTION. THE TAI A CHAU RECEPTION CENTRE WILL BE A VALUABLE ADDITION TO OUR ACCOMMODATION STOCK. THE LIMITED CAPACITY OF THE MAIN RECEPTION CENTRE AT GREEN ISLAND HAS BEEN A MAJOR CONSTRAINT IN DEALING WITH THE FLOOD OF NEW ARRIVALS THIS YEAR.
3. THE MAIN CASUALTY OF OUR SHORTAGE OF FUNDS HAS BEEN THE SECOND STAGE OF THE HIGH ISLAND PROJECT. WE HAVE MANAGED TO MUDDLE THROUGH BY DIVERTING FUNDS FROM THE WHITEHEAD PROJECT BUT WE SHALL SOON ALSO RUN INTO DIFFICULTIES KEEPING THIS PROJECT ON SCHEDULE, THE CONSEQUENCE OF DELAYS TO THE HIGH ISLAND AND WHITEHEAD PROJECTS IS THAT THERE WILL BE A DELAY IN MOVING PEOPLE FROM THE FERRIES. WE ARE CONCERNED ABOUT THE UNSATISFACTORY CONDITIONS ON THE FERRIES AND WOULD LIKE TO COMPLETE THESE MOVES AS SOON AS POSSIBLE.
4. SEEN FROM HERE, WE WOULD HOPE IT POSSIBLE TO MAKE EARLY PROGRESS ON OUR REQUEST FOR FUNDS TO COVER THE CURRENT BUILDING PROGRAMME. WE RECOGNISE THAT IT WILL PROBABLY TAKE LONGER TO COMPLETE CONSIDERATION OF THE TAI A CHAU/HEI LING CHAU PROJECT. IF THE TREASURY WERE ABLE TO GIVE AN EARLY INDICATION THAT OUR REQUEST FOR FUNDS TO COVER THE CURRENT PROGRAMME WILL BE APPROVED, WE WOULD BE ABLE TO OPEN AN ADVANCE ACCOUNT TO COVER THE IMMEDIATE COSTS. THE
TRANSFER OF FUNDS MIGHT TAKE A LITTLE TIME BUT IN THIS WAY WE WOULD BE ABLE TO COVER THE COST OF THE CURRENT WORKS AND KEEP THE PROJECTS ON SCHEDULE.
WILSON
YYYY
ADVANCE
2
HD/HKD
i
MR STONE/HKD
1
MAIN
15
MINIMAL
10 0
HKD
[GOODING]
169/
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