A proposal that Beijing withhold its United Nations membership fees to offset $1.16 billion owed to Hong Kong by the UNHCR has been rejected.
In a letter to Democrat James To Kun-sun, the Security Bureau said: 'After having obtained legal advice and considered your proposal in detail, the Government found the proposal not feasible.
'The link between the money owed by the United Nations High Commissioner for Refugees (UNHCR) to the Hong Kong SAR Government and the central Government's membership dues to the United Nations is too flimsy.' A spokesman said Beijing had not been consulted.
The $1.6 billion which UNHCR owes to Hong Kong is for the care of the more than 200,000 Vietnamese boat people who passed through Hong Kong.
Mr To said his proposal was feasible because the Government could credit the loan to the central Government's books for it to claim the debts back through offsetting.