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Foreign and Commonwealth Office

London SW1A 2AH

Miss P A Hitchcock

GF16

MOD MB 0258

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Telephone 01-

Your reference

Our reference

Date

FILE

130,

18 September 1989

НКВ

243

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HONG KONG DEFENCE COSTS : MILITARY ASSISTANCE AND THE VIETNAMESE

BOAT PEOPLE

In your letter of 23 August to Mr Paul, you asked what arrangements we have made for the reimbursement of expenses

1.

incurred by the MOD garrison in Hong Kong in providing assistance to the Hong Kong Government when setting up emergency accommodation for the Vietnamese boat people.

2. When calculating the amount of assistance HMG should offer to the HKG, we were, of course, aware of the need to ensure that your Department received payment for the valuable assistance it is providing in Hong Kong. After consultation with the Governor's office in Hong Kong and your garrison there, we therefore built the sum of £400,000 into the £4.5 million assistance HMG is giving to the HKG. We calculate that £400k should be sufficient to cover the costs incurred) the garrison.

3. May I suggest that you contact Mike Carbine in our Finance Department (210 6019) who will arrange to pay any outstanding invoices you have.

M V Stone

Hong Kong Department

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