TNAG-1905-FCO40-2709-Hong-Kong-Vietnamese-refugees-voluntary-and-mandatory-repat-1989 — Page 304

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FROM: C D Crabbie

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Mr Colvin, SEAD

DATE: 29 June 1989

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PS/Lord Glenarthur Mr Gillmore

Mr McLaren Mr Blatherwick

VIETNAMESE BOAT PEOPLE IN HONG KONG

1. As Mr Peirce (Private Office) already knows, the Chief Secretary's response to the Foreign Secretary's minute of 25 June making a call on the Reserve will be positive in substance if not tone. He is however particularly worried about the danger of "round-tripping" if the amount paid to returnees is too high. This might come about as part of the Vietnamese Government's attempt to obtain hard currency or as the result of private initiative.

2. You are of course aware of this danger and have addressed it already. On my front, I have told Treasury officials that we know the risks and will be careful to set compensation at a level which will not encourage round-tripping. In any case, I said that the boat people's journey was not a particularly safe one and that although we are committed to preventing their ill-treatment on return, it is unlikely that their reintegration will be all that easy. Furthermore, sizeable sums are presumably paid to escape from Vietnam which would have to be offset against any payment made to returnees.

3. I think we are alright on this. But we will naturally need to ensure that Hong Kong keeps an eye on the position once repatriation begins so that we can act if round-tripping looks like becoming a problem.

CHERAL Gannic

C D Crabbie

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CONFIDENTIAL