CONFIDENTIAL

friends, or with the Chinese? We had no new initiative to offer, but consultations of this kind might help our analysis. You agreed to give further thought to this point.

Vietnam

7. With next week's SCORRI hearings in mind, Mr Luce asked about aid for Vietnam. The BRC had argued that a modest amount of aid could lead the Vietnamese Government to behave more humanely to its subjects, and reduce the pressure for Vietnamese people to leave their country. In discussion, it was agreed that giving aid to Vietnam would not make any difference to the policies of the Vietnamese Government, and would probably do no more than line the pockets of the least deserving.

Ministerial Visit: Thailand/Brunei

8. Mr Luce said he was thinking of paying a visit to Thailand and Brunei in the early summer. The Thais had particular problems on their border with Cambodia and clearly valued their relations with Britain (as the Foreign Minister's message of 28 January to The Secretary of State had demonstrated). Brunei was going through a difficult period, but was of considerable importance to us (as the Sultan's call on the Prime Minister had shown). Our relationship with the Sultan was similar to that which we enjoyed with Sultan Qaboos of Oman, and needed regular attention. You agreed that a visit by Mr Luce to these two countries would be valuable.

9.

to ask for his

You agreed to sound out Mr Cornish, thoughts on a possible visit and on the internal problem of Brunei. It was noted that Mr Cornish would be paying a confidential visit to Singapore to brief Lee Kuan Yew on developments in Brunei.

Ministerial Visits: Hong Kong/China

10.

Mr Luce explained that he had originally thought of going to Hong Kong and China in June, as the Governor had suggested,

to show that the Government continued to take a close interest in Hong Kong's future as the 30 June deadline approaches. Since the PUS planned to go to Hong Kong and China in June, Mr Luce was inclined to postpone his visit to September/October, when he would aim to concentrate as much on thickening up the bilateral relationship with China as on reassuring Hong Kong.

Trade

11.

Mr Luce said he had been struck by the evidence in your Heads of Mission Conference report that British companies were not getting sufficiently stuck in to the Far Eastern market. He wondered whether anything could usefully be done at the political level. You reported that the President of the CBI, Mr Cleminson, would be visiting the Far East in the near future and was aware of the problem. It was agreed that he would be invited to call on Mr Luce when he got back.

Shermank

PJ Westmacott

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