TNAG-1912-FCO40-2716-Financial-assistance-from-the-UK-Government-to-Vietnamese-re-1989 — Page 11

DRAFT (B:RM394)

CONFIDENTIAL

ECONOMIC ASSISTANCE TO VIETNAM

Ministers have agreed that we should be prepared to offer Vietnam economic assistance in three separate ways, conditional

on a constructive approach to the boat people problem.

three ways are:

-

Joint financing with British voluntary agencies;

A small technical assistance programme;

A more constructive line in relation to Vietnam's

These

negotiations with the International Financial Institutions,

implying a willingness to provide programme aid in support

of an agreement with the IMF.

This paper assesses what needs to be done in each of these three

areas if the Vietnamese cooperate. Our Ambassador in Hanoi has

already spelt out in general terms what we have to offer in each

of the three areas, and Vietnam ́s response is awaited.

Joint Financing with British Voluntary Agencies

2.

Ministers have agreed that we should be prepared to do two

things:-

a)

b)

provide £1 million to cover up to 80% of the cost of joint

projects with British voluntary agencies for community

development activities in the areas to which the boat

people return;

add Vietnam to the list of countries eligible for ODA ́s

normal 50:50 Joint Funding Scheme with British voluntary

agencies.

CONFIDENTIAL