12th March, 1978

Me from LORD ELTON

X (N.B.: This memorandum should be read in conjunction

with text on a conversation with Mr. Phiraphongse of the same date.)

Re:

THAILAND - Bangkok

Mr. Wongse Polnikorn, Deputy Minister of Foreign Affairs (and Urachata Rodprasert from Department of International Organisations)

The Kampuchean/Vietnamese Confrontation

He recently met his Vietnamese opposite number. The Vietnamese Claim in the first instance that they are merely coping with a situation analogous to that which the Thais have on their border with Kampuchea. In fact what they are doing is trying to protect the interests of their fellow Vietnamese living inside the "Parrots Beak" area in Kampuchea. They do not, he thinks, wish to force that frontier back in order to extend the state of Vietnam to embrace all the Vietnamese. They do wish, by their actions, to secure proper treatment for ethnic Vietnamese while they remain subjects of Kampuchea.

Thai/Kampuchean Relations

In his meeting with Ieng Saree. Mr. Upadit had achieved "friendly accord" and the stated intention that Kampuchea wished to normalise relations with Thailand along their common frontier. This had not, so far, occurred. The only means of getting into Cambodia is by long standing connection with the' Kampucheans.

Laos

In a recent visit to Vietnam he saw no foreign troops.

The numbers, of Vietnamese troops engaged in sweeping up the MCO dissidents was probably small. He had specifically asked the Laos the extent of Vietnamese influence in Laos. To this they replied "Do you think we wish to exchange one set of masters for another?" In his view, the Vietnamese do not control Lao policy. There is a Russian presence. There is also a Chinese presence. The Chinese are building roads in the Northern province and it is said there has been a clash there recently between the Chinese and the Vietnamese.

Trade

The Thais wish to build up trade with Indo-China and they are also attempting to extend their exports of cheap textiles both to Indo-China and to East European Countries. They would very much welcome any efforts to reduce protectionism against their products in EEC countries. The Laos are offering to export timber to them in exchange for rice and other food products.

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