CONFIDENTIAL

were

This would inevitably increase the pressure on the regular battalions. As well as arguing for more passports we considering whether we could reduce the reliance on LEP/LECS by removing dependants in advance of 1997 and deploying unaccompanied roulement battalions. This should not add appreciably to the cost of the deployments. The Governor said that he agreed that we should stay flexible on the pace of withdrawal and that the Hong Kong Government would be pleased to help find employment for LEP/LECS remaining in Hong Kong after 1997.

b. Vietnamese Boat People. The Governor said that there were currently 64-65,000 VBP in camps in Hong Kong; between 80-200 entered Hong Kong every day. It was vitally important that a solution be found to this problem.

It would be intolerable to refuse asylum completely but unless the numbers were reduced the Legislative Council would certainly cause problems. He hoped, however, that an agreement might be reached with Vietnam by the end of the week which would involve three stages: first the Double Backers would be returned, during the first half of November; second new arrivals would be screened more quickly and, subject to appeal, be returned within a six week period; and third the "old lags" would be returned on a last-in first-out basis. He had no plans to employ the Armed Forces on any VBP-related tasks, except perhaps in the provision of logistic support.

c.

Lands. The Governor said that the picture was complex. The Chinese were unforthcoming. However, the filling of Tamar basin had been approved, and with it the transfer of Stores to Stonecutters Island. There was therefore a chance of movement on other sites. He hoped that the way ahead would be clear in six months'

time.

8.

The meeting lasted 45 minutes.

CONFIDENTIAL

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