CONFIDENTIAL

SOUTH EAST ASIA: BRITISH POLICY ASSUMPTIONS

1. South East Asia is of vital interest to China and perhaps

Japan, but not to the Soviet Union or the West (though they see it

as an important and interesting area).

2. Britain is interested essentially in the maintenance of

the area's stability and resistance to communism (whether of

Moscow or Peking variety), both for geopolitical reasons and

because this is necessary if our trade is to flourish.

3. ASEAN promotes area stability and should be supported

accordingly.

4. Buoyed up by ASEAN-induced self-confidence, and economic

growth, individual ASEAN countries' stability prospects good and

improving (except perhaps Philippines).

5. ASEAN economies have shown themselves dynamic and resilient.

Better placed than other developing countries to accelerate fast

out of recession. Still right to see them as growth area of the

80s''

(SEATAG description).

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6. ASEAN countries accepted that in post-Vietnam war South East

Asia they were condemned to be dominoes; decided that if dominoes

weren't to topple one by one they had better prop each other up;

have found this works and hanging together for fear of hanging

separately has become (and will remain) their overriding policy

imperative. This has promoted rapid growth of political

co-operation built around Japanese concept of consensus. All

five want to insulate South East Asia from effects of great

power rivalries, but differing views as to how to do so. In long

run all see China as main external threat.

CONFIDENTIAL

17.

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