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CONFIDENTIAL
FM HONG KONG
TO IMMEDIATE FCO
TELNO 2739
OF 16093OZ AUGUST 89
INFO IMMEDIATE UKMIS GENEVA
CONFIDENTIAL
HKB
243 / 1
121
031660
MDHIAN 2315
TOP COPY Q DIST?
YOUR TELNO 1713
VIETNAMESE BOAT PEOPLE : FUNDING
1 WE ARE GRATEFUL FOR YOUR CONFIRMATION THAT THE BALANCE OF THE
UK FINANCIAL CONTRIBUTION CAN BE MADE AVAILABLE TO US QUICKLY. THIS WILL ENABLE US TO FUND ALL OF OUR PRESENT CONSTRUCTION PROJECTS WHICH WILL PROVIDE AN ADDITIONAL 25,000 PLACES BY THE END
OF 1989.
2. THE DIFFICULITES WHICH WE HAVE EXPERIENCED WITH THE ESTABLISHMENT OF NEW DETENTION CENTRES HAVE BEEN DESCRIBED IN TUR. IT IS OUR JUDGEMENT THAT IN THE PRESENT POLITICAL ENVIRONMENT IT WOULD BE UNWISE TO PRESS AHEAD WITH PLANS TO CONSTRUCT FURTHER DETENTION CENTRE ACCOMMODATION ON A NEW SITE ON HK ISLAND OR THE MAINLAND I.E. THE NT OR KOWLOON. THE DEPTH OF FEELING WHICH THE VBP ISSUE AROUSES IN HONG KONG MEANS THAT WE WOULD FACE SEVERE DIFFICULTIES IN BRINGING SUCH A PROJECT TO FRUITION. WE HAVE THEREFORE DECIDED TO FOCUS OUR PLANNING EFFORT ON THE SOKO ISLANDS. A FEASIBILITY STUDY IS UNDERWAY AND WE HOPE TO HAVE A BROAD IDEA OF THE DEVELOPMENT POTENTIAL AND LIKELY COSTS BEFORE THE END OF THE MONTH. AT THIS STAGE IT SEEMS LIKELY THAT IT WOULD COST BETWEEN UKP 10-15 MILLION TO CONSTRUCT ACCOMMODATION AND
INFRASTRUCTURE FOR 10,000 PEOPLE.
3. IN THE PRESENT CIRCUMSTANCES THERE IS NO PROSPECT OF PERSUADING
THE FINANCE COMMITTEE TO FUND SUCH A PROJECT. TO PUT SUCH A REQUEST TO FC WOULD BE TO RISK SERIOUS POLITICAL AND CONSTITUTIONAL PROBLEMS AND WE HAVE CONCLUDED THAT WE SHALL HAVE TO LOOK ELSEWHERE FOR FUNDS. THE OBVIOUS OPTIONS ARE TO ASK UNHCR
TO PROVIDE THE NECESSARY FUNDS ON THE BASIS OF ANOTHER
INTERNATIONAL APPEAL OR TO ASK HMG TO MAKE A FURTHER FINANCIAL CONTRIBUTION. WE ARE NOT YET IN A POSITION TO FORMULATE A SPECIFIC
PROPOSALS BUT WE WOULD BE GRATEFUL FOR YOUR INITIAL COMMENTS ON
THE OPTIONS.
PAGE 1 CONFIDENTIAL