CONFIDENTIAL
FM HONG KONG
TO IMMEDIATE FCO
TELNO 1315
OF 27024OZ APRIL 89
INFO IMMEDIATE UKMIS GENEVA
CONFIDENTIAL
43
014130 MDHIAN 2337
MICD 2 ST?
TOP COPY
VIETNAMESE BOAT PEOPLE FINANCE
FINANCE COMMITTEE WAS DUE TO DISCUSS THE PROPOSALS TO CONSTRUCT NEW VBP ACCOMMODATION AT LO WU AND WHITEHEAD (STAGES 3 AND 4) AT A SPECIAL MEETING ON 26 APRIL. THE FINANCE COMMITTEE PAPER WAS ISSUED
ON 24 APRIL AND A BRIEFING SESSION FOR MEMBERS WITH THE SECRETARY FOR SECURITY TOOK PLACE ON 25 APRIL. DURING THE BRIEFING (ABOUT 15 MEMBERS ATTENDED) MOST MEMBERS MADE IT CLEAR THAT THEY HAD SERIOUS RESERVATIONS ABOUT THE PROPOSALS AND SUBSEQUENTELY THEY ASKED THE CHAIRMAN OF THE FINANCE COMMITTEE TO POSTPONE CONSIDERATION OF THE
PAPER. THIS HAS BEEN AGREED AND THE PAPER WILL NOW BE DISCUSSED ON 3 MAY.
2.
DESPITE EFFORTS BY THE SECRETARY FOR SECURITY TO COUNSEL RESTRAINT AND TO SEE THE REQUEST FOR FUNDS IN THE CONTEXT OF THE ICIR, IT WAS CLEAR FROM THE COMMENTS MADE BY MEMBERS DURING THE BRIEFING SESSION AND IN PUBLIC THAT THEY FELD OBLIGED TO REFLECT
THE GENERAL FRUSTRATION OF THE COMMUNITY ON THIS ISSUE BY ATTACHING
CONDITIONS TO ANY APPROVAL OF FUNDS. THERE IS A GOOD DEAL OF SPECULATION ABOUT HOW MEMBERS MIGHT REACT BUT TWO SPECIFIC
STRATEGIES WERE REFERRED TO BY MEMBERS DURING THE BRIEFING SESSION
ON 24 APRIL AND SUBSEQUENTLY IN COMMENTS TO THE PRESS.
3=
(A) THE APPROACH FAVOURED BY MR MARTIN LEE, HUI YIN FAT AND RONALD ARCULLI, IS THAT THE FUNDS SHOULD BE APPROVED AND THEN DEDUCTED FROM THE HKG ANNUAL CONTRIBUTION ON THE DCA.
(B)
MRS RITA FAN HAS SAID THAT SHE FAVOURS APPROVAL BUT WITH
A POLICY CAVEAT TO THE EFFECT THAT WE SHOULD NOT SEEK FURTHER
FUNDS UNTIL MANDATORY REPATRIATION IS A REALITY.
MEMBERS NOW HAVE A WEEK TO REFLECT UPON THESE ISSUES AND TO
DECIDE HOW THEY WILL RESPOND TO THE PROPOSALS. IT IS DIFFICULT TO PREDICT WHAT THEIR APPROACH MIGHT BE AT THIS STAGE BUT OF THE TWO STRATEGIES OUTLINED ABOVE, (B) SEEMS TO HAVE FOUND MOST
FAVOUR AMONGST MEMBERS. IT WOULD CLEARLY BE OPTIMISTIC TO EXPECT
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