RESTRICTED
disagreements. Yet in practice, Britain's principled stand and
support for ASEAN meant that there would be no British aid or
credits for Vietnam until they withdrew from Cambodia. Moreover,
the occupation of Cambodia exacerbated Vietnam's wider economic
problems, which led in turn to tension with the IMF and the refusal
of ECGD to offer cover. Improvement in relations would be possible
only after withdrawal from Cambodia. But there were other problems
in Vietnam which also needed to be addressed: human rights;
refugees. Cambodia was however the principal one, shutting Vietnam out from cooperation with the West in important sectors such as oil, gas and coal. An undertaking to withdraw in 1990 was not good enough; withdrawal was required now. Mr Hung expressed his wish
that there could be increased cooperation despite Cambodia. Oil,
mining, agriculture and merchant shipping were priority areas in
which Vietnam looked for assistance. Both Cambodia and Vietnam
needed time to find a solution. The problem was not just with the
Cambodians, it was principally with the Chinese. Mr Adams summed up
by saying that he was not content with the present relationship with Vietnam; it was a wasted opportunity. Ironically, the UK and
Vietnam had in the broadest sense a not dissimilar view of the
solution for Cambodia: neither of us liked the Khmer Rouge and we
shared the wish for an independent Cambodia run by a freely-elected
mix of the various factions and at peace with its neighbours.
6.
Presumably, Mr Adams continued, if a settlement could be found
for Cambodia, the Vietnamese perception of the threat from China
would be reduced. Mr Hung dissented. Both the UK and Vietnam had long experience of dealing with the Chinese. If the Cambodia problem disappeared, the Chinese would find a new one, such as overseas Chinese, border disputes or the dispute over the Spratley/Paracel islands. On the first of these, although many Chinese had left Vietnam, some 800,000 still remained. Mr Adams agreed that it was necessary to take care in negotiations with the
Chinese.
}
1.
Mr Hung
asked about Hong Kong. Mr Adams explained that,
RESTRICTED