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This takes account of an offer of 200 more houses from the GLC but they are
no likely to be made available very quickly and the voluntary bodies fear that
other offers may gradually dry up. This would affect the rate of movement out
of reception centres and significantly increase the costs of the reception
programme in 1981/82.
Possibility of a further quota
5. At a meeting with the Home Secretary on 6 November the Governor of Hong Kong proposed that the UK should accept a further quota of not more than 5,000 refugees. His immediate concern was that the Government should not give a
negative response at this stage. The Home Secretary indicated that he saw
considerable difficulties in the UK accepting a further commitment. The matter
was in any case one for Cabinet. The arguments against a further quota are both
political and practical: there is a shortage of housing offered even for the
present quota; local authorities are under severe financial restraint at a time
rising unemployment, to take another quota could cause resentment against the
refugees which might call into question the contribution already being made; and
there is no financial provision for the substantial extra costs that would be
involved. The Home Secretary agreed, however, to discuss the matter with the
Foreign Secretary and said that he would not oppose a further quota if his
colleagues wished to accept one; his view, however, was that his colleagues
would not agree to this additional commitment. The interim line agreed with the
Governor was that, if asked about the possibility of a further quota, the
Government would indicate that it was concentrating on completing its existing
programme and, if pressed, say that it was keeping the situation under review.
6. Since then, the Home Secretary has written to the Foreign Secretary drawing
his attention to the outcome of the meeting and undertaking to put the Hong Kong
case to his colleagues in due course if Lord Carrington considered that the
Governor's anxieties about significant numbers of refugees being left in Hong
Kong looked like being realised. In such circumstances, however, the Home
Secretary would be bound to express his serious reservations about the advis-
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