TNAG-1975-FCO40-2808-Financial-assistance-for-Vietnamese-refugees-in-Hong-Kong-1989 — Page 61

ARRAEB (3)

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6. At our request, the Governor has given us details of the

accommodation that will have to be provided and for which new funds.

are needed :

A

B

(a) emergency temporary accommodation, such as barracks and ferries, for the period April to September. Details are in Hong

Kong telno 1145. The estimated cost is HK$50 million (c £4

million).

(b) the expansion of facilities at the Whitehead Centre, the

first two stages of which are already under construction.

The

third and fourth stages are expected to cost HK$170 million (c £12

million). Details of what this will involve are set out in Hong

Kong telno 1072. The expansion of the Whitehead Centre would

provide permanent accommodation for the new arrivals which would

become available from September onwards.

7. We asked the Governor whether there was any cheaper alternative

to the Whitehead Project : he has advised that it would be possible

to put up make-shift temporary facilities at Whitehead for less

about HK$80 million. But they would soon have to be upgraded at additional cost if they were to be used for any considerable time. The cheaper option would therefore be a false economy and the Hong Kong Government do not propose to pursue it.

8.

-

In short, the Governor will need to find very soon about £12

million new funds an additional financial burden on the territory

which expects to spend some £63 million in total on boat people this

financial year (compared with £42 million in the last financial

year). He plans to approach the Finance Committee formally for

approval on 26 April, but has undertaken to brief them informally of

the requirement on 21 April

C D 9. The Governor has warned (Hong Kong telno 1050 and 1144) that

there is a very strong likelihood that the Finance Committee will

refuse to approve the new expenditure unless he can announce at the

same time that HMG are willing to contribute substantially. If the

Finance Committee were to refuse to approve the necessary funds, the

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