TNAG-1911-FCO40-2715-Financial-assistance-from-the-UK-Government-to-Vietnamese-re-1989 — Page 166

CONFIDENTIAL

TOP COPY Q DIST ?

HKB 243/11

CONFIDENTIAL

FM FCO

TO DESKBY 13010OZ HONG KONG

TELNO 2067

OF 12160OZ OCTOBER 89

127

135

141

050623

MDHOAN 5359

YOUR TELNOS 2923, 3163 AND 3369 VBPS: UK FINANCIAL ASSISTANCE 1. WE ARE MOST GRATEFUL FOR THE WORK YOU HAVE DONE IN EVALUATING

THE COSTS INVOLVED IN GOING AHEAD WITH THE TAI A CHAU PROJECT.

YOUR BIDS TO US FOR ADDITIONAL FUNDS

NOW AMOUNT TO WELL OVER POUNDS 18M (THE POUNDS

5.5M REQUESTED IN SECOND TUR AND HALF OF HKD 320M). THESE

ARE VERY SUBSTANTIAL SUMS. WHILE WE FULLY SYMPATHISE WITH YOUR EXTREMELY DIFFICULT POSITION, WE ARE NO LESS CONSCIOUS OF THE NEED TOMAKE THE BEST POSSIBLE CASE TO THE TREASURY IF EXPENDITURE OF THIS KIND OF MAGNITUDE IS TO BE AUTHORISED.

(A) THE ALTERNATIVE MEASURES.

2.

PARAGRAPH 6 OF FIRST TUR DEALT WITH POSSIBLE ALTERNATIVE OR ADDITIONAL MEASURES WHICH COULD BE TAKEN IN RELATION TO THE DEVELOPMENT OF TAI A CHAU. THESE ALTERNATIVES WILL NEED TO

BE RIGOROUSLY EXAMINED. WE FLAGGED THIS U IN OUR

-

TELNO 1879. THE POSSIBILITY OF INCREASING THE CAPACITY AT SHEK KONG AND HIGH ISLAND WOULD, ON THE FACE OF IT, APPEAR TO ALLOW FOR SUBSTANTIAL ADDITIONAL PLACES TO BE PROVIDED THE EFFECT OF ROMNEY HUTS BEING TO TREBLE THE ACCOMMODATION. WE ARE NOT CLEAR OF THE POTENTIAL CAPACITY OF THESE AREAS BUT CLEARLY IT WOULD APPEAR THAT THEY COULD MAKE A SUBSTANTIAL CONTRIBUTION TO

MEETING ANY INFLUX NEXT YEAR. WE WOULD THEREFORE BE GRATEFUL TO

RECEIVE YOUR DETAILED ASSESSMENT OF THSE SITES AND THE POLITICAL AND FINANCIAL IMPLICATIONS AS SOON AS POSSIBLE.

3. IT IS NOT CLEAR FROM YOUR FAX WHY THE COST OF CAMPS AT THE TWO OTHER SITES IS NOT SUBSTANTIALLY LESS THAN FOR TAI A CHAU

WHEN LOGIC DICTATES THAT CERTAINLY THE SITE AT TELEGRAPH BAY SHOULD BE. IS THIS BECAUSE THE ASSUMPTION FOR ALL THREE HAS BEEN TO USE PREFABRICATED BUILDINGS, WHICH APPER TO BE SUBSTANTIALLY MORE EXPENSIVE THAN ROMNEY HUTS?

HAVE YOU CONSIDERED EXPANDING WHITEHEAD EITHER BY FURTHER PHYSICAL EXPANSION OR BY REPLACING ROMNEY HUTS WITH PREFABRICATED BUILDINGS? (WITH INFRASTRUCTURE ALREADY IN PLACE, THIS COULD BE RELATIVELY CHEAP) ALSO, WHAT WILL BE THE FINAL COST PER PLACE FOR WHITEHEAD, WHEN ALL PHASES ARE COMPLETE?

(B) TAI A CHAU.

5. WE APPRECIATE THE POINTS MADE IN PARA 5 OF SECOND TUR THAT

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