TNAG-1912-FCO40-2716-Financial-assistance-from-the-UK-Government-to-Vietnamese-re-1989 — Page 27

cst.ps/5n112.12/lets

CONFIDENTIAL

Mr Paw, HKD //is.

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CHIEF SEC

SECRETARY

TO THE

TREASURY

islim Maude. ps/mes Chalker

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McLaren.

ith Gilimake.

Treasury Chambers, Parliament Street SWIP 3AG

The Rt Hon Douglas Hurd CBE MP

Secretary of State for Foreign Affairs Foreign & Commonwealth Office

King Charles Street

London

SW1A 2AH

Me Blatherwich

RMP. France D SEAD

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Dear Foreign Secretary

12 December 1989

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243

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HONG KONG: VIETNAMESE BOAT PEOPLE

Thank you for your minute of 23 November about further expenditure to deal with the problem of the Vietnamese Boat People in Hong Kong.

2 You sought agreement to a claim of up to £1.85 million on the 1989-90 Reserve to cover the gap between gross additional expenditure of £10.85 million and offsetting savings which had been identified. You also sought agreement in principle to a claim on the 1990-91 Reserve of approximately £14 million.

3

Our officials have subsequently reviewed in detail the prospects for offsetting savings in 1989-90 and have agreed that there will be sufficient deliverable savings to offset the entire additional expenditure of £10.85 million. The bulk of those savings, £8.22 million, arise because after the 1989-90 provision

had been settled for the UK contribution to the United Nations Transitional Assistance Group, it proved possible to secure agreement in the UN for a much reduced force.

4

On this basis, I am content with your proposals for additional expenditure in 1989-90 totalling £10.85 million, without recourse to the Reserve. It is unfortunate that the extra

£5.6 million which the Hong Kong Government has requested for security and bad weather improvements to the existing emergency accommodation exceeds the original cost of that accommodation, but I appreciate that events have led to that accommodation being required for longer than had been hoped.

5 I understand that £14 million is the best estimate at this stage of expenditure for 1990-91. I accept that some £7.5 million may be required then for the second tranche of expenditure on a new camp at Tai a Chau. I suggest that our officials keep in