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ALL BY SIR WILLIAM HARDING ON ARSA SARASIN, PERMANENT SECRETARY
THAI MFA
Present:
Sir William Harding HM Ambassador
Mr Arsa Sarasin
Mr D Wyatt
Mr Suphot Khaimuk, Deputy Director, Europe Division, MFA
1. Sir William Harding opened the discussion by referring to ACM Siddhi's comments on the Chinese attitude to Cambodia (see separate report) and the suggestion that the Chinese did not advocate socialism as a model for the least developed countries.
CHINA
2. This led to a discussion on the changing attitudes in China. Arsa said that it was in the interests of ASEAN that the present trends in China should continue. The increased economic threat, resulting from a more market orientated Chinese economy, was preferable to the security threat which a more aggressively communist China would present. The Chinese had cut off their support for communist groups in South East Asia. In the case of Thailand the Vietnamese would like to step in with support for communist insurgency (eg. Pak Mai) but in spite of Soviet backing they had not been very successful.
SOVIET ATTITUDE
3. Arsa repeated the view expressed by ACM Siddhi that the Soviet Union was unlikely to want Vietnam to mount a serious invasion across the Thai border. It was agreed that Soviet policies probably reflected a perceived need to maintain a balance between their interest in maintaining their bases in Cambodia, for which the price was support for Vietnam over Cambodia, and their desire to improve relations with ASEAN. Arsa said that he did not foresee any slackening in the Soviet Union's position on Cambodia. Wolfowitz had indicated that the US did not expect to get any change out of the Russians on this issue at the Geneva talks.
PHILIPPINES
4. Arsa said that the Thais were greatly concerned about the situation in the Philippines but they could not interfere. He admitted that the Thais were not well informed on the situation; he would welcome any information we could provide.
Sir William Harding said that the UK was pessimistic about the outlook. He agreed that the UK and Thailand should exchange information on the Philippines. Arsa welcomed this.
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5. Sir William Harding briefed Arsa on progress towards implementing the agreement with China on Hong Kong. Arsa said that China's handling of this would be followed with interest by the international community as an indication of China's good faith.
TAPIOCA EXPORTS
6. Arsa appealed for UK support for Thailand's claim for an increase in the quota for tapioca exports to the EC from 4.5 million tonnes to 5.5 million tonnes to take account of Spanish and Portuguese accession. (In this connection Arsa said that Thai exports of tapioca to Portugal were in the region of 400,000 tonnes per annum.) Sir William Harding said that the UK recognised the political and economic importance of this issue to Thailand. It was of course a matter for decision by the Community as a whole. We would continue to do our best to ensure that Thai arguments were given due consideration.
FALKLANDS
7. Sir William Harding spoke about the Falklands, drawing on FCO tel. 151 to Abidjan. Arsa confirmed that Thailand would again abstain although he commented that she needed to retain good relations with the South American countries.
INWARD INVESTMENT
8.
Arsa said that the EC/ASEAN Ministerial Meeting on Economic Matters had been successful. It was necessary to proceed to implementation particularly with regard to investment. Sir William Harding said that he had registered this point. Governments could point to opportunities; it was up to commercial firms to take them up. The Ambassador added that the opportunities for investment had been registered with Mr Channon. He also made
the point that existing British investors were aware of Thailand's. potential; there was however a need to encourage new investors.
British Embassy BANGKOK
22 November 1985
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