CONFIDENTIAL
104621
MDHIAN 4352
OUR BEST GUESS AT THIS STAGE IS THAT TO CONSTRUCT SATISFACTORY ACCOMMODATION FOR BETWEEN 10 AND 20,000 VBP WE SHALL NEED A MINIMUM OF STERLING 21 MILLION. WE COULD PROBABLY BUILD THIS ACCOMMODATION MORE CHEAPLY ON HONG KONG ISLAND, KOWLOON OR A NT SITE: BUT THE POLITICAL DIFFICULTIES OF DOING SO ARE DAUNTING. WE
HAVE IDENTIFIED POSSIBLE SITES (EG TELEGRAPH BAY ON HK ISLAND) WHICH MIGHT BE SUITABLE FOR A NEW LARGE SCALE CAMP BUT WE JUDGE IT UNWISE TO PRESS AHEAD WITH SUCH A PLAN IN THE PRESENT CIRCUMSTANCES. ON THE ASSUMPTION THAT IT WILL BE TECHNICALLY
POSSIBLE TO CONSTRUCT A LARGE SCALE DETENTION CENTRE AT TAI A CHAU, WE HAVE CONCLUDED THAT THIS IS THE PREFERRED APPROACH.
5. THE FUNDS REQUIRED TO IMPLEMENT OUR PRESENT CONSTRUCTION PROGRAMME AND TO PROVIDE A CONTINGENCY RESERVE ARE THEREFORE STERLING 26.1 MILLION, BROKEN DOWN AS FOLLOWS:
(A) HIGH ISLAND ADDITIONAL WORKS
(B) SEK KONG ADDITIONAL WORKS
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STERLING 3 MILLION.
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STERLING 1 MILLION.
(C) FERRIES
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STERLING 0.6 MILLION.
(D) TAI A CHAU IMPROVEMENT WORK STERLING 0.5 MILLION.
(E) TAI A CHAU FULL DEVELOPMENT
STERLING 21 MILLION.
6. WE ARE ALSO LOOKING AT THE POSSIBILITY OF INCREASING THE CAPACITY OF THE SEK KONG AND HIGH ISLAND CAMPS. THIS WOULD AMOUNT TO REPLACING THE TENTS AT SEK KONG WITH PREFABRICATED STRUCTURES WHICH WOULD PROVIDE MORE ACCOMMODATION THAN TENTS ON THE SAME SITE AND WOULD ALSO BE TYPHOON PROOF. OUR PRESENT INTENTION FOR HIGH ISLAND IS A MIXTURE OF PREFABRICATED STRUCTURES AND TENTS. IF WE WERE TO REPLACE THE TENTS PLANNED FOR HIGH ISLAND WITH PREFABRICATED BUILDINGS WE WOULD AGAIN BE ABLE TO INCREASE THE CAPACITY OF THE SITE. WE HAVE YET TO COMPLETE OUR ASSESSMENT OF THESE PLANS AND ARE NOT YET ABLE TO PROVIDE COSTINGS.
7. THE PRESENT POSITION ON RECURRENT EXPENDITURE IS THAT WE EXPECT TO BE ABLE TO COVER OUR COSTS UP TO THE END OF THE FINANCIAL YEAR NEXT WORD UNDERLINED PROVIDED UNHCR IS ABLE TO REIMBURSE US IN FULL FOR THE FOOD AND RELIEF ITEMS. WE HAVE HAD TO REVISE OUR ESTIMATE OF THE UNHCR SHARE OF THE EXPENDITURE TO TAKE ACCOUNT OF THE CONTINUING HIGH RATE OF ARRIVALS. WE NOW ESTIMATE THAT THE TOTAL REIMBURSEMENT FOR 1989 WILL BE ABOUT HK DOLLARS 170 MILLION.
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CONFIDENTIAL