CONFIDENTIAL
FM FCO
TO IMMEDIATE HONG KONG
TELNO 789
OF 0515OOZ APRIL 89
INFO IMMEDIATE UKMIS GENEVA
CONFIDENTIAL
HKB 243/11
9
122402 MDHOAN 8615
8
YOUR TELNO 1072:
VIETNAMESE BOAT PEOPLE: FINANCE
1. THANK YOU FOR THIS FURTHER INFORMATION ABOUT THE WHITEHEAD PROJECT. WE ARE NOW CONSIDERING URGENTLY WITH THE ODA WHAT MIGHT BE DONE TO HELP. AS YOU WILL APPRECIATE, IT IS NOT GOING TO BE AT ALL EASY.
2. WE NOTE, HOWEVER, FROM PARAGRAPH 1(C) OF YOUR TELEGRAM THAT STAGES 3 AND 4 OF THE WHITEHEAD PROJECT WOULD NOT BE AVAILABLE TO MEET A MAJOR INFLUX THIS SUMMER. WE HAD ASSUMED FROM YOUR
EARLIER TELEGRAM THAT THIS WOULD BE THE CASE AND THAT ANY ASSISTANCE FROM HMG COULD THEREFORE BE SEEN AS EMERGENCY AID TO
HELP COPE WITH A MAJOR HUMAN CRISIS.
MINISTERS WOULD OF COURSE FACE SERIOUS PRESENTATIONAL DIFFICULTIES IF THEY WERE TO AUTHORISE AN ALLOCATION OF ODA FUNDS TO HELP IN THE CONSTRUCTION OF A DETENTION CENTRE. THIS WOULD
OPEN THEM UP TO CRITICISM OVER THE USE OF AID FUNDS FOR THIS PURPOSE, AND WOULD BE LIKELY TO ATTRACT ADVERSE PUBLIC AND PARLIAMENTARY ATTENTION. YOU SHOULD KNOW THAT THE AID PROGRAMME IS ALREADY UNDER GREAT PRESSURE, AND ANY DECISION TO CHANNEL AID FUNDS TO HONG KONG CAN ONLY BE MADE AT THE EXPENSE OF OTHER AID PROGRAMMES.
3.
UNDER THESE CIRCUMSTANCES, WE WONDER WHETHER AN ALTERNATIVE APPROACH WOULD BE TO EXAMINE THE EXTENT TO WHICH ANY ASSISTANCE
WE MIGHT OFFER COULD BE CLEARLY IDENTIFIED AS HELPING TO COPE
WITH THE IMMEDIATE PROBLEMS OF ACCOMMODATING LARGE NUMBERS OF
ARRIVALS THIS SUMMER (EITHER IN THE FORM OF DIRECT AID OR AS PART
OF A UNHCR SPONSORED INTERNATIONAL APPEAL). WE APPRECIATE THAT THIS WOULD NOT FULLY OVERCOME THE PROBLEM YOU ARE LIKELY TO FACE WITH LEGCO, BUT IT WOULD ENABLE YOU TO ARGUE, WITH SOME JUSTIFICATION, THAT OUR CONTRIBUTION WOULD RELEASE HONG KONG FUNDS FOR THE WHITEHEAD PROJECT. GRATEFUL FOR YOUR VIEWS. 4. IT WOULD HELP US TO PUT THE CASE TO MINISTERS IF YOU COULD ALSO LET US HAVE A SUMMARY OF EXPENDITURE IN 1988/89 (CAPITAL AND RECURRENT ON REFUGEES AND ON BOAT PEOPLE) AND A SIMILAR BREAKDOWN ON YOUR ESTIMATED EXPENDITURE IN 1989/90, INCLUDING ADDITIONAL EXPENDITURE WHICH MAY ARISE IF THERE IS A SUBSTANTIAL
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CONFIDENTIAL
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