CONFIDENTIAL
HKB 243/11
CONFIDENTIAL
FM FCO
TO IMMEDIATE HONG KONG
TELNO 1378
OF 281820Z JUNE 89
INFO PRIORITY BTC HONG KONG
74)
055504 MDHOAN 4027
TOP COPY Q DIST ?
FROM HKD
75
YOUR TELNO 2125: VIETNAMESE BOAT PEOPLE: FINANCIAL ASSISTANCE FROM HMG
WE ARE GRATEFUL FOR THE INFORMATION IN TUR WHICH WE ARE NOW
USING TO PUT A CASE TO THE TREASURY.
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WE APPRECIATE THE NEED FOR SPEED AND VALUE FOR MONEY. WE MAY WELL HAVE TO DEMONSTRATE THIS CLEARLY IN THIS CASE IF WE ARE TO PERSUADE THE TREASURY TO ACCEPT EXPENDITURE ON THE PRE-FABRICATED HUTS FROM HOLLAND. A FURTHER IMPORTANT POINT IS THAT IT IS PROPOSED THAT THE SECRETARY OF STATE SHOULD VISIT THE SITE WHERE THEY ARE TO BE ERECTED. IS IT NOT POSSIBLE THAT BRITISH SUPPLIERS, SUCH AS TILDEN INDUSTRIES WHO HAVE ALREADY ACTED AS SUPPLIERS IN THE WHITE- HEAD PROJECT, MIGHT OFFER EQUIVALENT SPEED AND VALUE FOR MONEY? WE UNDERSTAND THEY ARE KEEN TO COMPETE.
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WE SHALL NEED TO RESOLVE THE DISCREPANCY BETWEEN THE SUM AUTHORISED BY THE TREASURY AND THAT ANNOUNCED BY THE GOVERNOR AFTER
HIS MEETING AT NO. 10 ON 8 JUNE. THE SPECIFIC AUTHORISATION FROM
THE TREASURY WAS AS STATED IN OUR TELNO 1367. WE MADE IT CLEAR IN
OUR BRIEFING LETTER TO NO. 10 IN ADVANCE OF THE MEETING THAT THE SUM INVOLVED WAS POUNDS 4.25 MILLION. WE ARE NOT SURE HOW THE ERROR AROSE.
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UNTIL THIS MATTER IS RESOLVED PLEASE DO NOT BUDGET FOR EXPENDITURE GREATER THAN POUNDS 4.25 MILLION, WHICH WILL INCLUDE THE COST OF THE SECOND AND THIRD SHIPMENTS OF TENTS, AND THE MOD GARRISON EXPENSES REFERRED TO IN YOUR TELNO 1987, ALL OF WHICH FALL INTO THE CATEGORY OF EMERGENCY ACCOMMODATION FOR WHICH THE
SUM WAS MADE AVAILABLE. WE MUST STRESS THAT THE FCO HAS NO INDEPENDENT FUNDS ON WHICH TO DRAW FOR SUCH EXPENSES, WHICH WAS THE REASON FOR OUR ORIGINAL APPROACH TO THE TREASURY.
YOU MAY ALSO WISH TO CONSIDER HOLDING SOME OF THE MONEY ALLO-
CATED IN RESERVE AGAINST FUTURE CONTINGENCIES.
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CONFIDENTIAL
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