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CC HK Dept

Resear Dept-

FED

CONFIDENTIAL

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CC: PS/Mr Luce

SEAD, FCO

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1. Lord MacLehose said that he should pass on some comments made by his host, Mr Lee Kuan Yew. The Prime Minister had in the course of general conversation expressed concern about the situation in the Philippines. He doubted whether President Marcos could long survive because of his failing health and loss of political control. His main worry was that if the situation was not restored the Americans might decide to call' off President Reagan's forthcoming visit. If that were to happen, there was a risk that anti-Government forces might conspire to undermine the US hold on the Subic and Clark naval bases with consequent damage to the stability of the entire region.

THIS IS A COPY THE ORIGINAL HAS BEEN

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EXEMPTION

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2.

3.

Lord MacLehose commented that both Mr and Mrs Lee seemed extremely fit, relaxed and in good humour (almost as though they had received some good news). I mentioned that my impression when I had seen Mr Lee on 20 September was that he appeared rather weary (but that was just before the Johore wedding celebrations)

4.

On the Mass Rapid Transit project, Mr Lee had told Lord MacLehose that Singapore would expect to finance the project without recourse to property development unlike in Hong Kong. The point was that in Mr Lee's view, Hong Kong had encouraged concentration of property development at MTR stations and Singapore wished to avoid this.

5.

We discussed the housing sector which provided the focus of Lord MacLehose's programme.

He had been interested to discover that the Singaporeans were following the same pattern of community links with Government which Hong Kong had developed. Socially problems in the highrise blocks seems not yet to be a great problem..

HKK040|5

23 September 1983

CONFIDENTIAL.

Am

D A MacLeod

[BHC Supapore]

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