TNAG-1975-FCO40-2808-Financial-assistance-for-Vietnamese-refugees-in-Hong-Kong-1989 — Page 109

CONFIDENTIAL

104500

MDHIAN 8726

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Mko 243/20

& usia d

CONFIDENTIAL

FM HONG KONG

TO DESKBY 31120OZ FCO TELNO 1050

OF 31111OZ MARCH 89

(3)

Q

MY TELNO 1002 AND YOUR TELNO 747 : VIETNAMESE BOAT PEOPLE: FINANCE

THE PROBLEM OF FINANCING ACCOMMODATION FOR VIETNAMESE BOAT PEOPLE OVER THE NEXT FEW MONTHS IS LIKELY TO BECOME A SERIOUS PRACTICAL AND POLITICAL PROBLEM. IT NEEDS TO BE DEALT WITH IN MORE DETAIL THAN HAS BEEN THE CASE IN TURS AND WITH A MORE FORMAL REQUEST FOR HELP FROM HERE.

2.

A TOTAL OF 842 VIETNAMESE BOAT PEOPLE HAVE ARRIVED DURING MARCH. THE TOTAL FOR THE YEAR NOW STANDS AT 1312. THIS IS 64 PERCENT HIGHER THAN FOR THE SAME PERIOD IN 1988. THERE NOW MUST BE A REAL PROSPECT THAT WE SHALL GET A MAJOR INFLUX DURING THE SUMMER. WE HAVE MADE CONTINGENCY PLANS TO COPE WITH SUCH AN INFLUX: BUT WE SHALL NEED A GOOD DEAL OF NEW MONEY TO BRING THE REQUIRED ACCOMMODATION INTO OPERATION.

3.

BUT

THE CENTRAL ELEMENT IN THESE PLANS IS THE FULL DEVELOPMENT OF THE WHITEHEAD PROJECT. STAGES 1 AND 2 HAVE BEEN COMMISSIONED. TO PROCEED TO STAGES 3 AND 4 WILL NEED THE APPROVAL BY FINANCE COMMITTEE OF THE NECESSARY FUNDS. THE COST OF FULLY DEVELOPING WHITEHEAD STAGES 3 AND 4 WILL BE ABOUT 170 MILLION HONG KONG DOLLARS. MAKE-SHIFT, TEMPORARY FACILITIES COULD BE PUT UP FOR CONSIDERABLY LESS (ABOUT 80 MILLION HONG KONG DOLLARS): BUT THEY WOULD HAVE TO UPGRADED AT ADDITIONAL COST IF THEY WERE TO BE USED FOR ANY LENGTH OF TIME.

4.

IF WE ARE TO COPE WITH THE LIKELY SCALE OF ARRIVALS THIS YEAR, WE NEED APPROVAL FOR THIS EXPENDITURE VERY SOON. WE WOULD ALREADY HAVE SOUGHT CONTINGENCY AUTHORITY WERE IT NOT FOR THE LIKELY REACTION BY LEGCO.

5. IT HAS BECOME CLEAR THAT FINANCE COMMITTEE MEMBERS WILL BE HOSTILE TO AN APPROACH FOR FUNDS FOR MORE VBP ACCOMMODATION. IF A MAJORITY OF MEMBERS REFUSE TO APPROVE SUCH A REQUEST WE HAVE NO/NO WAY ROUND THE PROBLEM. I HAVE NO/NO RESERVE POWERS ON FINANCIAL MATTERS. SO, IF WE CAME TO SUCH AN IMPASSE, WE WOULD FACE A SERIOUS PRACTICAL AND CONSTITUTIONAL PROBLEM.

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