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CONFIDENTIAL

Thailand, which he described as the key to ASEAN, was vital to US interests. The US Ambassador to Thailand, who had recently been in Washington for consultations, had returned to Bangkok with additional assurances of support for the Thai Government. In answer to a question, Holbrooke confirmed that the Administration still considered itself bound by the Manila Pact to assist the Thai Government. Such assistance would however consist primarily in the acceleration of current arms deliveries; he did not envisage US troops being committed to Thailand.

d. Soviet presence in Vietnam: The growing Soviet presence in Vietnam was of concern to the PRC and other South East Asian nations. Because of the risks which it entailed for the stability of the area it was also a matter of concern for the US, and the Administration had made this clear to both the Soviets and Vietnamese Governments. They had replied that recent developments were part of the normal evolution of relations between two countries, an answer which the US refused to accept.

4. Holbrooke was questioned extensively about the possibility of normalisation of relations with Vietnam. He made it clear that the Administration saw no bilateral impediment to normalisation of relations - the Americans had dropped their insistence on the resolut- ion of the MIA issue and the Vietnamese were no longer insisting on US aid as a pre-condition for normalisation. But in present circumstances, given the Vietnamese Government's inhumane policy on refugees, their steadily closer relationship with the Soviet Union and their policy towards Cambodia there was no prospect of progress towards normalisation. Holbrooke did not however preclude informal discussions from time to time in which views would be exchanged on regional and bilateral matters. (Incidentally, Wolff revealed at this point that he and members of the sub-committee hoped to visit Hanoi in August.)

5. Holbrooke was also questioned about the possibility of providing Bod aid for Cambodia if, as seemed likely, this year's rice crop were to fail. Holbrooke said that there were two problems: firstly to determine the precise extent of the food shortage, and he promised to let the sub-committee have the Administration's assessment which he thought would be ready in about two weeks; secondly how to ensure food aid reached all Cambodians throughout the country. This could be done only through some sort of international presence and monitoring. In the case of assistance from the US there were legislative restrictions on aid to Cambodia and Holbrooke took note with approval of a statement by the ranking Republican on the sub- committee to the effect that he would be prepared to support US assistance to Cambodia if it could be ensured that all Cambodians would benefit from it.

Comment

6. The Governor of Hong Kong is due to meet Holbrooke and the sub-committee today and tomorrow respectively to highlight the refugee problem that Hong Kong faces. This will provide the opportunity to

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CONFIDENTIAL

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