CONFIDENTIAL

(3)

THEY WOULD WELCOME A FURTHER MEETING TO DEAL WITH THE WHOLE COMPLEX OF ISSUES AT THE EARLIEST POSSIBLE MOMENT.

3. THE QUESTION THIS POSES FOR US IS WHETHER OR NOT WE WOULD BE PREPARED TO TAKE PART IN THE MEETING PROPOSED AT 2(E) ABOVE, THUS CONVERTING IT FROM AN AUSTRALIAN/ASEAN

CONFRONTATION TO A QUOTE ROUND-TABLE CONFERENCE UNQUOTE.

AS SEEN FROM HERE WE SHOULD NOT ONLY BE WILLING TO DO SO BUT SHOULD ACTUALLY PRESS FOR PARTICIPATION. IT WOULD BE DISADVANTAGEOUS TO LEAVE THE HANDLING OF THESE DELICATE ISSUES, WHICH VITALLY AFFECT US, ENTIRELY IN AUSTRALIAN HANDS. WE ALSO HAVE AN INTEREST FROM THE HONG KONG POINT OF VIEW, WHICH INTERLOCKS WITH THE ASEAN POSITION. THE UK WOULD HAVE, SOME OPPORTUNITY TO PLAY THE HONEST BROKER ROLE AT THE CONFERENCE. THE PROPOSED CONFERENCE ALSO HAS THE MERIT OF LOOKING CONCILIATORY AND WOULD AVOID THE APPEARANCE OF TRYING TO SPLIT THE ASEAN COUNTRIES WHICH BILATERALISM WOULD ENTAIL.

40

THE AUSTRALIANS UNDERSTAND THAT THE TEXT OF THIS LETTER

HAS ALREADY BEEN LEAKED TO THE PRESS IN MANILA AND ARE MOST ANXIOUS TO REPLY IMMEDIATELY. WE HAVE TOLD AUSTRALIANS WE WILL CONSULT

YOU AND WOULDBE GRATEFUL FOR YOUR RESPONSE IN THE COURSE OF

TODAY.

TEBBIT

[COPIES SENT TO CAD/DOT]

FILES

MAED

SPD

HK & GD(6) SEAD NEWS D OID

MR.BUTLER MISS BROWN MR.MURRAY

COPIES TO:

MR. RUMBELOW

DOT

DEPT.OF TRANSPORT

2

CONFIDENTIAL

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