TNAG-1911-FCO40-2715-Financial-assistance-from-the-UK-Government-to-Vietnamese-re-1989 — Page 184

CONFIDENTIAL

FM HONG KONG

TO IMMEDIATE FCO

TELNO 3162

CONFIDENTIAL

HKB 243/11

136,

"167460

MDHIAN 7051

TOP COPY Q DIST?

OF 25130OOZ SEPTEMBER 89

INFO PRIORITY HANOI, UKMIS GENEVA,

WASHINGTON

731

YOUR TELNO 1879 AND OUR TELNO 2923:

FINANCIAL ASSISTANCE

27

VIETNAMESE BOAT PEOPLE: UK

1. THE PRESENT POSITION IS THAT FINANCE COMMITTEE MEMBERS APPEAR DETERMINED TO MAINTAIN THEIR EMBARGO ON FUNDING FOR VBP RELATED

PROJECTS. THEY ARE UNLIKELY TO RELENT ON THIS UNTIL THEY SEE A REGULAR PROGRAMME OF MANDATORY REPATRIATION IN PLACE.

2. THIS FINANCIAL PRESSURE LEAVES US WITH PROBLEMS IN 3 SEPARATE

AREAS, AS SUMMARISED BELOW. THE MORE DETAILED INFORMATION YOU HAVE REQUESTED IN YOUR TUR IS IN MIFT.

(A) ACCOMMODATION PROJECTS CURRENTLY UNDER CONSTRUCTION. WE HAVE

EXPLAINED IN SECOND TUR THAT CHANGES TO PROJECTS IN THE CURRENT ACCOMMODATION PROGRAMME HAVE RESULTED IN INCREASED COSTS. MIFT

CONTAINS THE DETAILED INFORMATION YOU HAVE REQUESTED ON THOSE PROJECTS. AS YOU WILL SEE, WE HAVE ESTIMATED THAT WE NEED A FURTHER PDS 4.9 MILLION TO COMPLETE OUR CURRENT PROGRAMME, PLUS PDS 0.6 MILLION TO COVER THE COST OF HIRING FERRIES. THESE

PROJECTS WILL PROVIDE US WITH AN ADDITIONAL 25,000 PLACES OVER THE NEXT 3 MONTHS. THIS WILL THEN ENABLE US TO DISPENSE WITH THE

FERRIES, COPE WITH THE CLOSURE OF THE ERSKINE AND SHAM SHUI PO CAMPS AND RELIEVE THE SERIOUS OVERCROWDING IN MOST OF OUR CAMPS. IT WILL NOT HOWEVER PROVIDE US WITH MUCH OF A CONTINGENCY RESERVE TO MEET ANY NEW INFLUX NEXT YEAR.

(B) CONTINGENCY PLANS FOR NEW ACCOMMODATION. AS INDICATED IN PARA 7 OF MIFT, THE FEASIBILITY STUDY ON THE FULL DEVELOPMENT OF TAI A CHAU IS CLOSE TO COMPLETION. WE WILL PROVIDE FULL DETAILS OF THE

COST ESTIMATES IN EARLY OCTOBER BUT CANNOT DO SO UNTIL THE

FEASIBILITY STUDY IS COMPLETE. IT IS CLEAR THAT THE TAI A CHAU

PROJECT WILL BE A MAJOR UNDERTAKING AND THAT IF IT IS TO BE READY BEFORE THE SUMMER PEAK FOR ARRIVALS NEXT YEAR, WE MUST MAKE A START DURING OCTOBER. WE SHALL THEREFORE NEED YOUR CONFIRMATION

THAT FINANCIAL SUPPORT FOR THIS PROJECT WILL BE AVAILABLE FOR THIS

PROJECT ASAP ONCE THE FULL COST ESTIMATES ARE FINALISED.

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CONFIDENTIAL