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7. Mr Dhanabalan hoped that not merely Britain but also the

EEC would be able to do more. In answer to a question, he said that coordination of foreign policies was growing although it

depended on the personalities involved. Dinesh Sing who had

visited the ASEAN capitals to sound them out about recognition of

the new regime in Cambodia had been surprised at their consistent

responses, which had of course been coordinated by the Foreign

Ministers concerned.

Non-Aligned Movement

8. Mr Dhanabalan confirmed that Singapore still recognised

Democratic Kampuchea which still had a seat at the United Nations.

They did not like referring to it as the Pol Pot regime, in view

of their dislike of Pol Pot's policies. Ieng Sary had taken his

seat in Colombo but had not spoken, but at Havana the Cubans might

even refuse visas. It was hypocritical of the Non-Aligned

Movement to include such countries as Vietnam and Cuba but a

surprising number of small countries now seemed prepared to speak

There was no point in remaining aboard a train going in the

wrong direction.

out.

ASEAN's Economic Development

9. Mr Dhanabalan said that Singapore's relatively advanced economy

might be a handicap to economic integration within ASEAN. Singapore

had therefore told her partners that she was willing to stand aside

until such time as they had caught up if they wished to set up their

own free trade area.

Civil Aviation

10. Mr Dhanabalan said that the divisive Australian tactics towards

ASEAN were disturbing. The Australians should realise that it was

in their interests for ASEAN to become a strong coordinated group.

Unfortunately the Australians had for years sheltered behind tariff

barriers and the ICAP dispute was the latest example of this.

Singapore had no objection to cheap rates but did object to them

being confined to Qantas and British Airways and to the exclusion of

CONFIDENTIAL

/stop-overs

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