DSR 11 Revised Sept 85)

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HONG KONG: VIETNAMESE BOAT PEOPLE

1.

At the OD(K) meeting on 4 October the Sub-committee

concluded that my predecessor should pursue with you the

outstanding funding questions related to the problem of

Vietnamese boat people in Hong Kong.

In your letter of 9 August, you indicated that you

were content with our proposals for expenditure of

2.

£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.

Enclosures flag(s)

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

CONFIDENTIAL

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