TNAG-0792-FCO40-996-Refugees-from-Vietnam-in-Hong-Kong-Vietnamese-boat-people-1978 — Page 287

CONFIDENTIAL

2

3. (contd)

Funds are apparently no problem since at one stage it seems they were contemplating buying the whole building for HK$20 million. It is difficult to believe that this was ever a serious option and in any case most of the other floors had already been bought (by a pleasant coincidence the bottom two floors will be occupied by the American Restaurant).

4.

There is, of course, nothing we can do to prevent the Vietnamese buying property here: but we shall continue to keep a careful watch for any attempts they make to carry out consular activities. So far their embryonic travel agency, Viettravel, has no real business to conduct (in the absence of direct routes between Vietnam and Hong Kong) and is in practice no more than a telephone in the Vietnam Import/Export Company in Asian House. We have found no basis for rumours that it issues visas.

5.

We shall not be surprised if, following the move, the Vietnamese come up with proposals to fill their new office space with extra staff members from Vietnam. They will be able to point to the considerable increase in trade last year: direct Hong Kong exports at HK$122 m. were nearly 400% up on 1976 (see enclosed table). the current serious deterioration in Sino-Vietnamese relations reinforces our reluctance to allow any significant increase in the number of Vietnamese officials operating in Hong Kong.

However,

CC

CT W Humfrey Esq SEA D, F CO

RE Allen Esq

FE D, F C O

Miss E B W Luke Hanoi

J W B Richards Esq Peking

Encl:

Yours ever,

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I ain

(I C Orr)

CONFIDENTIAL