TNAG-1910-FCO40-2714-Financial-assistance-from-the-UK-Government-to-Vietnamese-re-1989 — Page 75

G14ABH

HKB 243/11

CONFIDENTIAL

FROM:

G F Griffiths Finance Department

DATE:

29 June 1989

CC:

Mr Blatherwick

Mr Crabbie, RMD

97

Mr Paul

HKD

VIETNAMESE BOAT PEOPLE

1.

FINANCIAL ASSISTANCE

We spoke about the £0.25 million discrepancy between the sum of £4.25 million agreed by the Treasury and the £4.5 million which appeared in the Press Notice produced by No.10. We are now certain that the mistake occurred in No.10.

In

2. I have discussed with Mr Crabbie how we should proceed. view of the Secretary of State's imminent visit to Hong Kong, suggest a short submission from your Department recommending that the Secretary of State explains that we do not have any more than £4.25 million to spend on this project including the cost of the tents.

3. The submission should explain that if we do not stick to the agreed figure, the only alternatives (both unpromising) are:-

i) For the Secretary of State to write to the Chief Secretary

seeking an extra £0.25 million from the Reserve.

The Chief Secretary would be unlikely to entertain such a small claim on the Reserve, and the Secretary of State may have reservations about blaming the Prime Minister's Office for the mistake.

ii) For Finance Department to apply to the Treasury to draw the

£0.25 million from the FCO's Unallocated provision.

The Treasury are likely to be unwilling to allow us to use our Unallocated provision for such a purpose, particularly in view of the agreement that our claim on the Reserve for extra military aid for Mozambique is conditional on our meeting at least part of the cost from any unspent amount of our Unallocated provision.

CCHE entfes

G F Griffiths ·

Finance Department 210 6100 OAB 2/115

CONFIDENTIAL

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