TNAG-1975-FCO40-2808-Financial-assistance-for-Vietnamese-refugees-in-Hong-Kong-1989 — Page 65

ARRAEB (7)

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Financing Aspects

17. If Ministers agree the funds of the order of £6 million must be

found for this purpose, there are two possible sources :

Allocation of Further Funds from the ODA's Contingency

(a)

Reserve

HMG's disaster and refugee relief is met from the ODA' S

Contingency Reserve. So far in 1989 £2 million has been found

from this for UNHCR's programme in Hong Kong for Vietnamese

boat people. Following other refugee relief commitments

announced recently, including those by the Prime Minister and

the Secretary of State for Mozambican refugees in Malawi (£3 million) and for Afghanistan (£2 million) respectively, the

balance of refugee funds now stands at just over £7 million.

This will have to be husbanded most carefully in order to

enable the ODA to make responses over the remainder of the

current financial year to the heavy demand for refugee relief,

particularly in the Horn of Africa, Mozambique and Afghanistan. The remainder of the Contingency Reserve, on which there are already substantial claims, will also have to be husbanded

carefully to meet unforeseeable but inescapable contingencies

over the remaining eleven months of the year.

(b) A Bid for Additional Funds from the Reserve

The chances of success are uncertain but one option would be

for the Secretary of State to make an urgent request to the

Chief Secretary for an in-year addition to the FCO PES

provision. Routeing this aid through UNHCR would point to

the ODA seeking additional funds from the Treasury. It is

however most unlikely that money could be obtained from the

Treasury in the necessary timescale.

18. In view of the extremely tight financial position, Ministers will also wish to consider the option of not responding positively to the Governor's request. It is possible that a pre-emptive

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