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of the submission. Nor should we under-estimate the extent to which LEGCO and the population at large will blame the UK for the situation. It is widely, if wrongly, believed in Hong Kong that the Hong Kong Government adopted a first-asylum policy at the insistence of HMG, and that HMG has since done little to relieve Hong Kong of the resulting burden.

8. We must therefore do everything we can to limit the number of those arriving in Hong Kong and to ensure that those who are not refugees return to Vietnam. As regards the specific recommendations in paragraph 2 of the submission:-

(a)

We must certainly exert as much pressure

as we can on the Vietnamese (paragraph 2c), but we must recognise that we have no real levers to do so and that the root causes of the exodus poverty and mismanagement in Vietnam will not be eliminated quickly, even if there is an early Cambodian

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settlement and Vietnam begins to attract Western aid in significant volumes.

(b) We must also maintain and increase pressure

on the Chinese (paragraph 2c). It is intolerable that they should be criticising our policies publicly when they know that the problem has been exacerbated by their own lack of action. I agree with Mr Paul that the Governor's idea of a regional holding centre in South China has some serious disadvantages and I am not sure that it is practicable. But I do not think we should dismiss it out of hand, more particularly because I do not think we should place too much reliance on the proposal for a regional holding centre in the Philippines (paragraph 2b). Such ideas have been mooted before and nothing has ever come of them. therefore think we should invite the Governor to expand on his ideas, as he has offered to do, so that we can examine them in more detail. Subject to further consideration by Ministers, we might then discuss the idea very informally with UNHCR. In the meantime, I recommend that the Secretary of State should consider sending a message to his Chinese counterpart, drawing attention to the latest figures; referring to the continuing practice of coast-hopping, and offering to provide evidence; and once more seeking Chinese assistance. The message could include the specific suggestion in paragraph 13b of the submission.

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