XN000022-1987-03-30 — Page 2

MONDAY, MARCH 30, 1987

HK CONTINUES TO RELY ON RESETTLEMENT TO SOLVE VR PROBLEM

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THE SECRETARY FOR SECURITY, MR DAVID JEAFFRESON, SAID TODAY (MONDAY) THAT UNTIL A DURABLE SOLUTION TO HONG KONG'S VIETNAMESE REFUGEE PROBLEM WAS FOUND, HONG KONG WOULD HAVE TO CONTINUE TO RELY ON RESETTLEMENT.

SPEAKING AT THE LUNCHEON MEETING OF THE ASSOCIATION OF THE PAST CHAIRMEN OF THE TUNG WAH GROUP OF HOSPITALS, MR JEAFFRESON SAID THAT THE HONG KONG GOVERNMENT HAD PROPOSED SEVERAL YEARS AGO THAT ALL NEW ARRIVALS SHOULD BE SCREENED TO DETERMINE WHETHER THEY WERE GENUINE REFUGEES AND THAT THOSE FOUND NOT TO BE REFUGEES SHOULD DE REPATRIATED TO VIETNAM.

HE EXPLAINED THAT THIS WOULD INVOLVE DISCUSSIONS WITH THE GOVERNMENT OF VIETNAM AND WAS THEREFORE A MATTER FOR THE UK GOVERNMENT.

DURING THE LAST TWO YEARS THE UK GOVERNMENT HAD NOT THOUGHT IT APPROPRIATE TO RAISE THIS MATTER WITH THE VIETNAMESE.

OUTLINING THE HISTORY OF HONG KONG'S REFUGEE PROBLEM

MR JEAFFRESON NOTED THAT IT HAD BEEN DECIDED AT A UNHCR CONFERENCE IN GENEVA IN JULY 1979 THAT ALL THOSE LEAVING VIETNAM WERE PRESUMED TO BE REFUGEES THAT THE COASTAL STATES WOULD GRANT THEM ASYLUM AND THAT THE INTERNATIONAL COMMUNITY WOULD PROVIDE RESETTLEMENT PLACES.

HE EXPLAINED THAT ALTHOUGH THESE THREE DECISIONS WERE STILL IN OPERATION, SOME COUNTRIES HAD DECIDED THAT SOME OF THOSE IN HONG KONG WERE NOT REFUGEES WHILE SOME PLACES OF FIRST ASYLUM WERE THREATENING TO TURN AWAY NEW ARRIVALS AND, IN THE MEANTINE, RESETTLEMENT PLACES WERE DRYING UP,

THEREFORE, LOOKING TO THE FUTURE, HONG KONG WOULD HAVE TO CONTINUE TO DEPEND ON RESETTLEMENT BEFORE A DURABLE SOLUTION TO THE REFUGEE PROBLEM WAS FOUND, MR JEAFFRESON SAID.

MONETARY STATISTICS FOR FEBRUARY RELEASED

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STATISTICS PUBLISHED TODAY (MONDAY) BY THE MONETARY AFFAIRS BRANCH SHOW THAT HONG KONG DOLLAR DEPOSITS GREW FASTER IN FEBRUARY THAN IN JANUARY 1987, BUT THAT NOTES AND COINS HELD BY THE PUBLIC DROPPED AFTER THE SEASONAL DEMAND DUE TO THE CHINESE NEW YEAR WAS OVER. DEPOSITS IN FOREIGN CURRENCIES ALSO CONTINUED TO GROW.

HONG KONG DOLLAR M1 (THE NARROWEST DEFINITION OF MONEY SUPPLY) FELL, REFLECTING THE DROP IN THE AMOUNT OF CASH HELD BY THE PUBLIC. HONG KONG DOLLAR M2 AND M3, HOWEVER, CONTINUED TO GROW.

/TOTAL LOANS