TNAG-1910-FCO40-2714-Financial-assistance-from-the-UK-Government-to-Vietnamese-re-1989 — Page 70

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have put to us a number of other schemes, amounting to

some £ 4.9 million in all, which would accommodate some

18,000 people.

3. Our officials have discussed this enforced change of

plan, and your people have made the point that your

original agreement to expenditure of up to £ 4.25 million

was based on accommodating 7,000 people, and that one of

the components of the proposed package would provide

accommodation for up to 9,000 people at a cost of up to

£ 2.5 million. Your officials are therefore not prepared

to agree to our spending more than £ 2.5 million on

emergency accommodation (plus the £ 250,000 already spent

on tents).

4. My problem is that the Government has publicly

committed itself to providing £ 4.5 million for emergency

accommodation for Vietnamese boat people. Because the

barracks at Lei Yeu Min are no longer available, we can

now for the same sum of money provide accommodation for a

greater number, at no more cost. You will appreciate that

given the extreme sensitivity of our current relations

with the Hong Kong Government, I cannot tell the Governor

that we are reducing the amount of our assistance. I

should be grateful for your agreement to our spending up

to £ 4.5 million towards emergency accommodation,

£ 4.25 million of which would be an agreed claim on the

Reserve.

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