DRAFT (B:RM367)

CONFIDENTIAL

Vietnamese Boat People

Replaces paras 16-18 of draft to Chief Secretary

As for the returning non-volunteers themselves we have an

agreement with the Government of Vietnam to make a payment of

$625 per head for each of the first group of returnees, to be

used for various forms of support on their return; and have

agreed with them that further discussion will take place on the

arrangements for subsequent groups. The Vietnamese have argued

for a higher figure, while we consider the amount already generous in relation to UNHCR norms. Since the first group is

expected to be around 50 persons the cost will be trivial in relation to the sum of "up to about £4 million" agreed by Treasury in (? June). The Hong Kong Government will meet costs

of transport etc for each refugee, which are of a similar order

of magnitude.

The main issue here is what it will take to re-negotiate our

agreement with the Vietnamese to cover a programme of substantial

and regular returns. As mentioned during the OD (K) meeting on 4

October, we would propose to negotiate a sufficient level of incentive for the Vietnamese to accept back all non-refugees, whether they volunteer or not. It is my judgement that in order to secure Vietnamese agreement to such a programme we will need

to be able to offer a significant financial inducement to

Vietnam. Such an inducement could take several forms, which are

not mutually exclusive:

(a) a continued capitation payment (which could cost a theoretical maximum of about £15 million on the basis of 38,000 returnees at $625 each, a sum that would of course be drastically reduced if voluntary repatriation, which would be financed

CONFIDENTIAL

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