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The Governor has already formally requested HMG to contribute

substantially to these costs (my minute of 31 March). I am in

touch with the ODA and will be submitting separately on this

aspect.

Mandatory Repatriation

6.

There is unfortunately very little, if anything, that can be

done to avert this crisis. Paragraphs 13-14 below consider what

action could be taken immediately with the Chinese and Vietnamese

authorities to try to stem the flow of arrivals in Hong Kong in the

coming months. But this does not get to the heart of the matter. The Governor is convinced (and I share his view) that the only way

to deter large scale departures by boat from Vietnam is through

mandatory repatriation. However even this step (assuming the

necessary measure of international agreement can be achieved) could

not be taken in time to affect this summer's influx. At best it

would head off the prospect of a new influx in 1990. And if

progress could be seen to be made quickly enough, it might help to

take some of the heat out of the impending political crisis in Hong

Kong.

7. The logic of Hong Kong's screening policy has always been that

those screened out as non refugees must all eventually return to Vietnam. In endorsing this policy, we have always accepted that it would be necessary at some stage to resort to mandatory

repatriation. But in the meantime we have made a start with those who have volunteered to go back, in the hope that the success of the

volunteers' programme would encourage others to follow suit. All the indications are that only a very small proportion of screened

out boat people are ever likely to volunteer to return, unless it is

made crystal clear to them that there is no alternative.

8. Given the political sensitivities, both in this country and internationally, we have deliberately not forced the pace on

mandatory repatriation. It has seemed more sensible to let the international consensus on the issue develop gradually (while giving

voluntary repatriation every chance to succeed). And we have made some (modest) progress: the Comprehensive Plan of Action agreed at

the Kuala Lumpur Preparatory Conference in March, states that "if

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