TNAG-1910-FCO40-2714-Financial-assistance-from-the-UK-Government-to-Vietnamese-re-1989 — Page 46

CONFIDENTIAL

D

E

(b) HMG is in any case now publicly committed to a sum for

emergency accommodation of £4.5 million (not £4.25 million). This

is because the Press Notice prepared by No 10 for the Governor's use

after his meeting with the Prime Minister on 8 June erroneously included the figure of £4.5 million as the total sum available. The

briefing letter provided by the FCO for that meeting specified the

correct sum. The Treasury have however indicated that they would

be prepared for an extra £0.25 million to be found from the FCO's

unallocated provision.

Argument

7.

HMG's contribution to emergency accommodation in Hong Kong is

seen there as a litmus test of our commitment to the territory in

difficult times. The figure of £4.5 million is public and has been used by Ministers on repeated occasions. It would be politically very damaging indeed if we were to claw back the £1.5 million which

the Treasury are now seeking.

8.

It is true that the Chief Secretary's left it to officials to

agree the final sum. But the boat people crisis has worsened since

then. And the overal political situation in Hong Kong has

deteriorated following events in China. The Treasury give no weight

to these political factors. Moreover, arguably they are in effect

penalising the Hong Kong Government for having identified more cost

effective means of providing emergency accommodation (ie more places

for the same money).

ARPanc

A R Paul

CONFIDENTIAL