ARRAEB (5)

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problem in sight, there will be substantial pressure on the Finance

Committee to take a stand on principle.

13. A prompt and generous response by HMG to the Governor's appeal

would demonstrate our concern about the boat people problem and our

genuine desire to assist. It would help to take the heat out of

what is certain to be an extremely difficult political situation

this summer. In view of the scale of the problem, a contribution of

about £6 million is about right. Anything much less would be widely viewed in Hong Kong as inadequate. A grudging response, or worse

still no response at all, would go down very badly in Hong Kong. It would increase resentment of HMG, and could have the very serious

constitutional consequences of which the Governor has warned.

that event we might have to pay up anyway but would get no credit

for it. An early announcement would also be helpful in defusing the criticism of conditions in the camps in Hong Kong which seems

likely to be triggered by the Foreign Affairs Committee's visit to

the territory.

Presentational Aspects

In

14. I have discussed both these options with the ODA. In addition

to the financing problems (see paragraph 17 below) both options could entail significant presentational difficulties :

(a) people in this country might object in principle to the provision of aid to Hong Kong, which has a GDP per head not

much less than our own, and which could well afford to meet the

full financial burden of the boat people. This objection can be countered by pointing out that the boat people are a problem of international humanitarian concern; and that in any case Britain has a particular responsibility for Hong Kong and should demonstrate its commitment to help in a tangible way. Nevertheless for reasons of presentational and principle it would be very desirable indeed, if not essential, that the aid

should be channelled through UNHCR (see paragraph 14 below).

(b)

we might also be open to criticism over the allocation of

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