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3.

Mr Blaker hoped that the world could be brought to condemn

Vietnam. The situation for us in Hong Kong was particularly bad with over 1,000 refugees a day arriving. We had some hope that the Chinese would slow down the rate of migration from China but

this might take several months.

Chinese influence

4. In response to a question from Mr Blaker, Mr Dhanabalan said

that the ASEAN countries, especially Thailand, thought that the

threat of further Chinese "punishment" would hold back the

Vietnamese from invading Thailand. Although they did not say so publicly, the ASEAN countries have accepted China's role as a restraint

on Vietnam. But they had no illusions about the long-term (15-20

year) Chinese ambitions; these were being served by Vietnamese

aggressiveness, causing ASEAN countries to become increasingly

dependent on China. Indonesia and Malaysia were torn between their

fear of Vietnam and their distrust of their own Chinese inhabitants.

The Vietnamese had played on this but Indonesia and Malaysia now

recognised Vietnam as the more immediate threat to their very

survival.

ASEAN

5.

Mr Dhanabalan said he was surprised at the growing solidarity

of ASEAN, which offered South East Asia an alternative economic

structure to that of the communist societies, although Thailand and Indonesia were still basically military governments. To maintain

their lead they would have to work together more closely in economic

and indeed in the political and military coordination. Many

European countries now recognised the importance of encouraging ASEAN

to work as a group and he hoped that there would be a return of

British interest in the region.

Mr Blaker confirmed that the first topic which was raised with him

in his present job was ASEAN and said that he hoped to make a tour

of the ASEAN countries later in the year.

6.

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