129

MINISTRY OF DEFENCE

Main Building Whitehall London SW1A 2HB

Telephone (Direct Dialling) 01-218

(Switchboard) 01-218 9000

ext

1. Please send this to

Mike Carbine,

France 1,

Vec. Mr Paul ofr

Head of Hong Kong Department Foreign and Commonwealth Office Whitehall

London SW1A 2AP

Your reference

Our

referenc GF1/98/1/3/11

Date

23 August 1989

HONG KONG DEFENCE COST AGREEMENT VIETNAMESE BOAT PEOPLE.

MILITARY ASSISTANCE AND THE

In his letter of 30 June AUS (GF) enquired what financial assistance you were proposing to give the HKG to assist with the costs incurred in dealing with the Vietnamese Boat People. We have since learnt that you have earmarked some £4.5M, although at the time of writing I am told it has not been received by the HKG. As we anticipated the HKG have now stated to the MOD that they are unable to pay the bill we have presented covering the use of service equipment and manpower. This clearly brings into question whether we can continue to provide assistance at the current level.

I would be grateful, therefore, if you could please let me know the current state of play, and, in particular, when the funds will be made available.

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