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(b) the expansion of existing facilities at the new 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). Further details of the Whitehead
project are set out in Hong Kong telno 1073.
(c) the provision of funds for what he describes as a
substandard and makeshift Whitehead project, which could not be maintained for any length of time without further substantial
improvements.
6. The Governor will need to approach the Finance Committee of
LegCo very soon for approval for these additional funds. He plans to do so on 26 April. He has however warned that there is a very
strong likelihood that the Finance Committee will refuse to vote the
necessary funds unless he is able to announce at the same time that
HMG is willing to contribute substantially. If a majority of the Finance Committee refuses to approve funds, there would be no way round the problem. The Governor has no reserve powers in financial
matters. His authority would be seriously undermined. Under such circumstances, it is not clear how the Hong Kong Government would
cope with the influx of arrivals.
7. The attitude of members of the Finance Committee reflects a
general hardening of public opinion in Hong Kong on this issue. There is growing criticism of the first asylum policy and a general feeling that the UK, having imposed the first asylum obligation on Hong Kong, is now ducking its responsibilities. There is a
widespread view that the UK should meet at least part of the bill.
With resentment in Hong Kong over the issue at an unprecedented
level, the prospect of a new influx this summer, with no solution to
the problem in sight, is an alarming one.
8.
Britain's performance over the boat people problem has
become for most people in Hong Kong a touchstone of HMG's commitment
to Hong Kong. We have an opportunity, by responding promptly and
generously to the Governor's request, to demonstrate our commitment
to the territory and earn some much needed goodwill. On the other
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