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0274741 MDHIAN 410

USD 50 (TRAVEL ALLOWANCE), WITH THE ENTIRE USD 360 BEING PAID TO THE MINISTRY OF LABOUR. ANVAR ADDED THAT THE VIETNAMESE WOULD HAVE TO IDENTIFY HOW THE MONEY WAS USED IN LOCAL COMMUNITY PROJECTS TO ENSURE PROPER ACCOUNTABILITY TO DONORS. IN PASSING, UNHCR CONFIRMED THAT ALTHOUGH USD 50 IS PAID TO ALL ADULT RETURNEES, ONLY IN THE CASE OF VOLUNTEERS IS THE MONEY PAID IN HONG KONG. NON-VOLUNTEERS GET IT ON THEIR RETURN TO VIETNAM. CHANOI TELNO 57 AND HONG KONG TELNO 199).

6.

ANVAR NOTED THAT LORD CAITHNESS HAD RAISED WITH THE HIGH COMMISSIONER THE QUESTION OF PHASING OUT DIRECT CONTRIBUTIONS TO VOLUNTEERS IN FAVOUR OF PAYMENTS TO THE VIETNAMESE AUTHORITIES. UNHCR WAS ENTIRELY AT ONE WITH US ON THIS. ITS ONLY CONCERN WAS TIMING. AT PRESENT THERE WAS A HEALTHY NUMBER OF VOLUNTEERS IN HONG KONG. A CUT-OFF ANNOUNCEMENT MIGHT CAUSE A HUGE SURGE OF EXTRA VOLUNTEERS WHOSE RETURN COULD NOT BE GUARANTEED QUICKLY. UNHCR WOULD WELCOME OUR FURTHER THOUGHTS ON TIMING OF SUCH A CHANGE. WE SPECULATED THAT ONE APPROACH MIGHT BE, WHEN THE FLOW OF VOLUNTEERS STARTED TO DRY UP, TO ANNOUNCE A REDUCTION OF SAY 50 PER CENT IN THE AMOUNT PAID TO INDIVIDUALS AFTER 2 MONTHS, AND A FURTHER REDUCTION TO ZERO LATER.

FUNDING

7. UNHCR STRESSED THAT ITS ABILITY TO DELIVER ON THE ABOVE CHANGES DEPENDED ON EARLY DONOR PLEDGES FOR 1992. IT HAD NOW PAID THE REMAINING USD 1.8M OWED TO THE VIETNAMESE FOR 1991 COSTS (PARA 3 OF TUR). BUT THE SITUATION FOR 1992 WAS EXTREMELY SERIOUS. THE ONLY CONTRIBUTIONS SO FAR WERE FROM THE USA (NONE OF WHICH COULD BE USED IN VIETNAM) AND FINLAND (ONLY USD 175,000). UNHCR HAD PRESSED BRUSSELS AND TOKYO FOR EARLY CONTRIBUTIONS. THE EC HAD NOT YET REPLIED, BUT THE JAPANESE DID NOT EXPECT TO BE ABLE TO PAY UNTIL AFTER MARCH. ANVAR URGED US TO MAKE OUR PLEDGE AS SOON AS POSSIBLE. EVEN AN INITIAL PLEDGE, WITH PAYMENT LATER IN THE YEAR, WOULD GIVE UNHCR THE NECESSARY FINANCIAL AUTHORITY TO MAKE PAYMENTS

IN VIETNAM.

COMMENT

8.

UNHCR IS CLEARLY WILLING TO DO ALL IT CAN TO HELP. ON LUMP SUM PAYMENTS AND ORP II FUNDING TO THE VIETNAMESE ANVAR AND HIS TEAM ARE NOW ENTIRELY IN LINE WITH OUR OWN THINKING. THEY ARE ALSO SYMPATHETIC TO PHASING OUT DIRECT PAYMENTS TO VOLUNTEERS, SUBJECT TO TIMING CONSIDERATIONS.

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