TNAG-0896-FCO40-1106-Refugees-from-Vietnam-in-Hong-Kong-Vietnamese-boat-people-1979 — Page 305

CONFIDENTIAL

4

7. Sir Jack said, despite local objections, that he had decided to allow some refugees to take paid employment. There was at present in Hong Kong a manpower shortage and this policy made sense, although it had been done solely on humanitarian grounds. He had personally received great criticism and his "soft" policies were said to encourage countries of re-settlement to give more

places to other countries of first refuge than to Hong Kong. By the end of the year, Hong Kong anticipated a refugee population of 250,000, combined with a down-turn in the economy from October onwards. Severe problems were envisaged. Unless Hong Kong's order-books were full after that, Hong Kong residents would be competing for jobs with refugees and there would be great pressure to withdraw the refugees' right to work. If that happened, the refugees would have to be moved into a vast camp, of which Hong Kong had no experience and very severe internal problems could be expected.

8. Reverting to the wider scene in South East Asia, Mr McMichael said that on the evidence available to him, he would be surprised

if, as Sir Jack had said earlier, China planned to attack Vietnam again in November. He also asked about the security problems in

Hong Kong.

9. The meeting ended at 12.10pm.

CONFIDENTIAL