CONFIDENTIAL

FM HONG KONG

TO IMMEDIATE FCO

TELNO 2923

CONFIDENTIAL

HRB 243/11

OF 05113OZ SEPTEMBER 89

INFO PRIORITY UKMIS GENEVA, WASHINGTON INFO ROUTINE HANOI

126

TOP COPY Q DIST?

(127

104621

MDHIAN 4352

YOUR TELNO 1795: VIETNAMESE BOAT PEOPLE: UK FINANCIAL ASSISTANCE

1. I HAVE NO ILLUSIONS ABOUT THE DIFFICULTIES INVOLVED IN PURSUADING THE TREASURY TO AUTHORISE A FURTHER UK FINANCIAL

CONTRIBUTION AN AM GRATEFUL FOR YOUR AGREEMENT TO MAKE THE CASE ON

OUR BEHALF. UNDER PRESENT CIRCUMSTANCES I SEE NO/NO PROSPECT OF GETTING FUNDS WE NEED FROM THE FINANCE COMMITTEE. MONEY FROM

ELSEWHERE IS THEREFORE ESSENTIAL IF WE ARE TO COPE WITH EXISTING

ACCOMMODATION PROBLEMS AND MAKE EVEN MINIMUM PROVISION FOR FUTURE

CONTINGENCIES.

2. WE HAVE NOW COMMITTED ALL OF THE CAPITAL FUNDS AT OUR DISPOSAL, INCLUDING THE STERLING 4.5 MILLION UK CONTRIBUTION, TO THE NEW ACCOMMODATION PROJECTS. WE HAD HOPED THAT THIS WOULD BE SUFFICIENT

TO COVER THE FULL COST OF THESE NEW PROJECTS: BUT ADDITIONAL WORKS

(MAINLY IMPROVED SECURITY FENCING AND DRAINAGE/SEWAGE DISPOSAL) AT

SEK KONG, HIGH ISLAND, LO WU AND TAI A CHAU HAVE MEANT THAT WE ARE NOW SHORT OF FUNDS TO COMPLETE THE WORK. WE ESTIMATE THAT WE WILL

NEED A FURTHER STERLING 4.5 MILLION TO COMPLETE THESE PROJECTS. IN

ADDITION, WE ESTIMATE THAT WE NEED STERLING 0.6 MILLION TO COVER THE COSTS OF USING THE FERRIES DURING SEPTEMBER AND OCTOBER. WE

HOPE TO BE ABLE TO DE-COMMISSION THE FERRIES IN EARLY NOVEMBER:

CONDITIONS ON BOARD ARE VERY POOR.

3. THE PRESENT CONSTRUCTION PROGRAMME WILL PROVIDE A TOTAL OF ABOUT 25,000 NEW PLACES, MAINLY AT WHITEHEAD AND HIGH ISLAND, BEFORE THE END OF THE YEAR. THIS SHOULD ENABLE US TO DISPENSE WITH

THE PRESENT UNSATISFACTORY ACCOMMODATION AT TAI A CHAU AND THE FERRIES, RELIEVE THE SERIOUS OVERCROWDING IN MOST OF OUR CAMPS, AND COPE WITH NEW ARRIVALS UP TO THE END OF THE YEAR. IT WILL NOT

HOWEVER PROVIDE US WITH ANY RESERVE TO MEET A NEW INFLUX IN THE SPRING OF 1990.

4. WE HAVE YET TO COMPLETE THE FEASIBILITY STUDY FOR A CONTINGENCY

RESERVE CENTRE ON TAI A CHAU BUT WE EXPECT THE COST TO BE HIGH.

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CONFIDENTIAL

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