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Chancery KUALA LUMPUR

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BREAKFAST MEETING WITH TAN SRI GHAZALI, MALAYSIAN MINISTER OF HOME

AFFAIRS

1.

The Secretary of State had breakfast with Tan Sri Ghazali, the Malaysian Minister of Home Affairs on 1 July. He was accompanied by a number of Malaysian officials including the Inspector General of Police, Tan Sri Haniff, two Deputy Undersecretaries to the MFA,' Enciks Hamid Pawanchee and Bertie Talalla. On the British side apart from the High Commissioner, Sir Donald Hawley, Mir Rowley (from the FCO in London), Mr Hayward from the High Commission and I were present. The breakfast lasted nearly two hours.

I was unable to take a full record but the following are the main points which were discussed.

CIVIL AVIATION

2.

Ghazali said that in his view the negotiations needed a Ministerial push. He did not attempt to make a direct connection between the outcome of the negotiations and the continuation of the Concorde service but indicated that public opinion in Malaysia did see such a connection. He thought that following the breakup of Malaysia Singapore Airlines, Malaysian Air Services had been discriminated against in favour of Singapore International Airlines. The Secretary of State agreed that the matter should be considered at Ministerial level and not just left to officials. It had been a pity that the last round of official talks had been held before British Ministers had had a chance to focus on the problem that, during the last round of official talks, Malaysian officials had not known of their Ministers' favourable decision on Concorde continuing beyond the 6 month period.

CONFIDENTIAL

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