CONFIDENTIAL
I realise that the amounts requested, £3.6 m, are substantial But the situation in Hong Kong is such that I consider we have no alternative but to provide this additional help.
5. Since I last wrote to you on 4 August the situation in Hong Kong has continued to deteriorate seriously. the beginning of August there were some 51,000 Vietnamese boat people in Hong Kong. Boat people continue to arrive at the rate of 145 per day during August and by the end of August there were almost 56,000. The seasonal slow down thankfully did occur in September when 1076 arrived - although this figure is still some three times as great as for September 1988. In October to date 427 Vietnamese boat people have arrived.
6. Because of the huge influx, HKG was forced to utilise a barren island, Tai a Chau, as a temporary and very primitive camp. At its height, there were over 5,000 Vietnamese boat people on Tai a Chau. Regrettably there was a cholera outbreak (fortunately no-one died) but it did necessitate the complete evacuation of the island, which is being cleansed. As a result, all the other camps are now over 50% above their designed capacity. Social tension runs high and there have been outbreaks of factional fighting at almost all of the camps.
7. The Governor remains extremely concerned, both over the situation in general and over the political issues involved.
8.
As you may have read, there were public outcries when the new camps at Shek Kong and High Island (in a county park) were initiated. Demonstrations halted work at the High Island site. Local feelings ran very high, particularly when it became apparent that the Vietnamese boat people were finding it quite easy to climb over the perimeter fences of the Shek Kong camp. The local population threatened to set up vigilante groups. press carries daily and extensive coverage of any and every incident. The issue has a higher media profile than virtually any others in Hong Kong, and there is a deep sense of frustration in the community which has undermined confidence in the ability of HKG to deal effectively with Hong Kong's problems.
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9. Politically the position of the Legislative Council has hardened further. The Governor feels that there is a very real chance that if a motion to cease the first asylum policy were put now, it would be carried. The need to implement mandatory repatriation quickly has