NOTHING TO BE WRITTEN IN THIS MARGIN

W(8)L 51-7406

CONFIDENTIAL

c..

into the I.C.C., working with the two Chairmen,

so that this group could supervise the execu-

tion of a settlement.

close

We were watching the

situation with/interest and would be ready to

play our part when the time came.

16. Mr. Stewart thought that the Russians were

on the whole a moderating influence in North

Vietnam, while the Chinese were the reverse.

The Russian influence was probably the greater. Bank It was remarkable how great a degree of freedom

of action the North Vietnamese had managed to

preserve.

17. Any settlement must include a programme of

aid and rehabilitation. We too would wish to

tke part in this. The South must be free to

choose a government without pressure; but the

reunification of Vietnam had to be a much more

distant objective. Mr. Stewart agreed that

now that both parties were in Paris they would

not go away without a settlement, though this

would take time.

18. In Laos the Communists would hold on to

their positions as long as they judged these

necessary for their purposes in Vietnam. SOUTH-EAST ASIA (COVERING DEFENCE, REGIONAL CO-OPERATION AND AID POLICIES

Defence 19

Mr. Stewart said that after 1971

the defence of the area would be a matter for

decision by the countries concerned. The next

round of the five-power talks at Ministerial

level would be held in June. It was gratifying

to see Australia now taking the lead. Both

Australia and New Zealand intended to stution

/forces

COTRID CIUTAT,

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