ARRAEB (4)
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Governor would have no way round the problem. He has no reserve
powers in financial matters. His authority would be seriously
undermined. He would moreover face the major practical problem of
how to cope with the new arrivals without the necessary resouces.
10. The Governor has suggested that the aid could be targetted on
either :
(a) the emergency temporary accommodation referred to in para 6(a) above (an estimated £4 million) or
(b) the Whitehead Project referred to in para 6(b) (with HMG meeting
the cost of half the facilities, ie £6 million).
He has advised that a contribution on this scale would in his
judgement reconcile the Finance Committee to the authorisation of
the necessary further funds.
Timing of Decision
11. The Governor would ideally like to be able to tell LegCo
members informally on 21 April that HMG is willing in principle to
contribute and give an indication of the size of the contribution.
He would certainly have to know our decision by 26 April at the
latest.
Argument
12. I am sure that the Governor is right to warn of this
potentially very serious outcome. Feeling in Hong Kong, and in the Legislative Council, over the boat people problem is now very strong indeed. There is a growing sense of frustration as the problem
continues to worsen; there is mounting criticism of the first asylum
policy and its effects on Hong Kong; and there is if anything even stronger than ever resentment of HMG's rule. Many feel that HMG
imposed the first asylum obligation on Hong Kong and having "ordered
the meal expects Hong Kong to pay". Hence the widespread conviction
that we should meet at least part of the bill. With no end to the
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