CONFIDENTIAL

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Livelihood and have been threatened with transportation to "new

economic zones" where they would live in spartan conditions. These

people too have taken the chance offered by the official Government

scheme to leave on overcrowded and frequently unseaworthy boats, the

tariff includes a charge of the equivalent of £1,500 for each adult,

and further charges for various "services", but there is evidence

that the rates are being cut, as the richer emigrants leave.

1,200,000 ethnic Chinese may still remain in Vietnam, where they are

treated like a Fifth Column. There is unlikely to be any change in

the Vietnamese Government's policy as relations between Vietnam and

China are unlikely to improve.

Up to

9. We have made clear to the Vietnamese Government our concern at

their callous behaviour. We have also urged other countries to

bring their influence to bear on the Vietnamese.

Malaysian Government's Policy

10. The statement by the Malaysian Deputy Prime Minister that his

Government would "shoot" new arrivals has been disowned by the

Prime Minister, Datuk Hussein Onn. The Malaysian Prime Minister has

added that Malaysia is not prepared to be left with the residue of

refugees and that if they are not accepted for resettlement after a

reasonable time, the Malaysian Government will "send them away".

The Malaysians are evidently embarked on a harsher policy intended to

discourage new landings and they could adopt more drastic measures in

the absence of progress in removing boat refugees already in their

country.

Thai Policy

11. The Thai Government has forcibly repatriated many thousands of

Cambodians, although these people may come to grief in their own

country. We appealed to the Thais to desist. Famine in Cambodia is

likely later this year, since the countryside has been fought over

for so long and normal cultivation has been impossible.

CONFIDENTIAL

South East Asian Department

20 June 1979

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