ARRAEB (6)

UNHCR

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aid funds for the construction of facilities which are in

effect detention centres. This would almost certainly rule out

earmarking funds for the Whitehead Project (UNHCR have made it

clear that they would have nothing to do with this) and there could well also be presentational difficulties in justifying

aid for the emergency accommodation (this is borne out by

UNHCR's reaction).

E

15. We have spoken to the UNHCR to see whether they would be able

to serve as

as a channel for the aid, either by launching an

international appeal or by acting as a conduct. Their reaction (UKMIS Geneva telno 203) was a disappointing one. They have ruled

out a special international appeal and have raised objectives of

principle to our suggestion that they might act as a conduct. We

could return to the charge but I judge the chances of early success

to be small.

F

16. In view of the pressing need for early decisions, I have

explored with Hong Kong possible alternative ways of working through

UNHCR. The approach which offers the best chance of success (and which would incidentally be preferable from a presentational point of view) would be to make a suitably large contribution to the

appeal which UNHCR in any case will be launching within a couple of

weeks for Pillar Point. (This is a camp for refugees, the costs of

which have so far be borne by the Hong Kong Government. The

proceeds of the appeal will be used to reimburse Hong Kong for

expenditure already made). The Governor has commented (Hong Kong telno 1228) that, while far from ideal, this approach could achieve

the objective of securing a favourable response from the Finance Committee provided that :

(a) the size of the UK contribution was a substantial one, ie

in the order of half the cost of the Whitehead project (£6

million).

(b)

there was an early announcement of the UK contribution, in advance of the UNHCR appeal.

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