TNAG-1907-FCO40-2711-Hong-Kong-Vietnamese-refugees-voluntary-and-mandatory-repat-1989 — Page 72

SECRET

FM HONG KONG

TO IMMEDIATE FCO

TELNO 3580

OF 271045Z OCTOBER 89

INFO IMMEDIATE HANOI

SECRET

HKB

243 19

338

120560

MDHIAN 1854

TO

TOP COPY Q DIST?

VIETNAMESE BOAT PEOPLE: REPATRIATION

WE WERE INFORMED EARLIER TODAY THAT DRAGONAIR HAVE REASSESSED THEIR POSITION AND HAVE CONCLUDED THAT THEY NO LONGER FEEL ABLE TO PROVIDE AN AIRCRAFT FOR THE RETURN OF THE FIRST GROUP OF NONVOLUN- TEERS. THEY INITALLY CITED CONCERNS ABOUT INFRINGING THEIR OPERATING LICENCE ALTHOUGH, ON CLOSER INSPECTION, THESE CONCERNS PROVED TO BE GROUNDLESS. NONETHELESS, DRAGONAIR HAVE DECIDED THAT THEY CANNOT AFFORD TO TAKE WHAT THEY HAVE NOW DECIDED IS A RISK INVOLVED IN TRANSPORTING NON-VOLUNTEERS TO HANOI IN ONE OF THEIR BOEING 737 AIRCRAFT.

2. DRAGONAIR HAVE A FLEET OF 4 BOEING 737'S EACH OF WHICH HAS A CAPACITY OF 122. ALTHOUGH AT AN OPERATIONAL LEVEL THEY ACCEPT THAT THE RISKS ARE MANAGEABLE, THEIR CHAIRMAN HAS COME TO THE CONCLUSION THAT, IN THE LIGHT OF THE COMPANY'S FINANCIAL POSITION, HE IS NOT PREPARED TO EMBARK UPON AN OPERATION WHICH MIGHT, IF ANY DAMAGE WERE DONE EG TO THE DECOR OF ONE OF THEIR AIRCRAFT, JEOPARDISE THE COMPANY'S WHOLE SCHEDULE OF OPERATIONS.

3. IN VIEW OF THIS UNWELCOME DEVELOPMENT WE HAVE FOLLOWED UP OUR EARLIER CONTACTS WITH CATHAY PACIFIC. THEIR INITIAL RESPONSE HAS BEEN FAVOURABLE: FLIGHTS HAVE BEEN PENCILLED IN FOR 17 AND 24 NOVEMBER. THE AIRCRAFT WILL BE A TRISTAR WHICH WILL BE MORE EXPENSIVE THAN A DRAGONAIR BOEING 737 BUT IT WILL ENABLE US TO PROVIDE A HIGHER LEVEL OF SECURITY IF THE AIRLINE THINK THIS NECESSARY.

4. CATHAY PACIFIC HAVE YET TO GIVE THEIR FINAL WORD ON THIS ARRANGEMENT. THEY MIGHT STILL WITHDRAW. WE HAVE BEEN ABLE TO MEET ALL OF THEIR CONCERNS ON SECURITY AND AIRCRAFT SAFETY REGULATIONS. THEY ARE HOWEVER CONCERNED ABOUT ADVERSE PUBLICITY AND WOULD FEEL MORE COMFORTABLE IF WE WERE TO DIRECT THEM TO UNDERTAKE THIS WORK. THIS MIGHT ENABLE THEM TO DISTANCE THEMSELVES FROM THE OPERATION IF THEY RUN INTO DIFFICULTIES LATER. WE CAN ISSUE SUCH A DIRECTION UNDER OUR DEPORTATION LEGISLATION (SECTION 24(1)(D) OF THE IMMIGRATION ORDINANCE, CAP 115) AND ARE PREPARED TO DO SO.

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