CONFIDENTIAL
FM HONG KONG
TO IMMEDIATE FCO
TELNO 3162
CONFIDENTIAL
HKB 243/11
136,
"167460
MDHIAN 7051
TOP COPY Q DIST?
OF 25130OOZ SEPTEMBER 89
INFO PRIORITY HANOI, UKMIS GENEVA,
WASHINGTON
731
YOUR TELNO 1879 AND OUR TELNO 2923:
FINANCIAL ASSISTANCE
27
VIETNAMESE BOAT PEOPLE: UK
1. THE PRESENT POSITION IS THAT FINANCE COMMITTEE MEMBERS APPEAR DETERMINED TO MAINTAIN THEIR EMBARGO ON FUNDING FOR VBP RELATED
PROJECTS. THEY ARE UNLIKELY TO RELENT ON THIS UNTIL THEY SEE A REGULAR PROGRAMME OF MANDATORY REPATRIATION IN PLACE.
2. THIS FINANCIAL PRESSURE LEAVES US WITH PROBLEMS IN 3 SEPARATE
AREAS, AS SUMMARISED BELOW. THE MORE DETAILED INFORMATION YOU HAVE REQUESTED IN YOUR TUR IS IN MIFT.
(A) ACCOMMODATION PROJECTS CURRENTLY UNDER CONSTRUCTION. WE HAVE
EXPLAINED IN SECOND TUR THAT CHANGES TO PROJECTS IN THE CURRENT ACCOMMODATION PROGRAMME HAVE RESULTED IN INCREASED COSTS. MIFT
CONTAINS THE DETAILED INFORMATION YOU HAVE REQUESTED ON THOSE PROJECTS. AS YOU WILL SEE, WE HAVE ESTIMATED THAT WE NEED A FURTHER PDS 4.9 MILLION TO COMPLETE OUR CURRENT PROGRAMME, PLUS PDS 0.6 MILLION TO COVER THE COST OF HIRING FERRIES. THESE
PROJECTS WILL PROVIDE US WITH AN ADDITIONAL 25,000 PLACES OVER THE NEXT 3 MONTHS. THIS WILL THEN ENABLE US TO DISPENSE WITH THE
FERRIES, COPE WITH THE CLOSURE OF THE ERSKINE AND SHAM SHUI PO CAMPS AND RELIEVE THE SERIOUS OVERCROWDING IN MOST OF OUR CAMPS. IT WILL NOT HOWEVER PROVIDE US WITH MUCH OF A CONTINGENCY RESERVE TO MEET ANY NEW INFLUX NEXT YEAR.
(B) CONTINGENCY PLANS FOR NEW ACCOMMODATION. AS INDICATED IN PARA 7 OF MIFT, THE FEASIBILITY STUDY ON THE FULL DEVELOPMENT OF TAI A CHAU IS CLOSE TO COMPLETION. WE WILL PROVIDE FULL DETAILS OF THE
COST ESTIMATES IN EARLY OCTOBER BUT CANNOT DO SO UNTIL THE
FEASIBILITY STUDY IS COMPLETE. IT IS CLEAR THAT THE TAI A CHAU
PROJECT WILL BE A MAJOR UNDERTAKING AND THAT IF IT IS TO BE READY BEFORE THE SUMMER PEAK FOR ARRIVALS NEXT YEAR, WE MUST MAKE A START DURING OCTOBER. WE SHALL THEREFORE NEED YOUR CONFIRMATION
THAT FINANCIAL SUPPORT FOR THIS PROJECT WILL BE AVAILABLE FOR THIS
PROJECT ASAP ONCE THE FULL COST ESTIMATES ARE FINALISED.
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CONFIDENTIAL