CONFIDENTIAL

2

3. Mr Renton asked how successful the Philippines Government

had been in curbing the Muslim insurgency in Mindanao.

Dr Sigur said that he was not sure how much success they were

having. But this insurgency (which clearly followed religious

lines) was much less important than the Communists.

4.

On the position of Enrile, Dr Sigur thought that there

was no question of him mounting a coup. He was putting pressure on Mrs Aquino to move in the direction he favoured. He had doubts about some of her policies, which were shared by

others. But was too shrewd a person to take her on directly,

given her popularity. Ramos remained loyal to Mrs Aquino.

The

5. On the Communist insurgency, Dr Sigur said that the

Administration had no quarrel with Mrs Aquino's policy.

cease-fire gave a valuable opportunity to rebuild the Army.

Ramos and Enrile both understood the need for this, although

they might not say so in public. The differences within the Cabinet on this issue were not as significant as sometimes

suggested.

6. Mr Renton said that he was glad to hear this assessment. We all wished to see Mrs Aquino succeed in overcoming the serious problems she faced.

CAMBODIA/VIETNAM

7.

Mr Renton noted some indications of a more forthcoming Chinese attitude towards a settlement along the lines supported by ASEAN. Mr Monjo agreed that the Chinese now seemed to be ready to concede a role for the Heng Samrin regime in an

interim settlement.

CONFIDENTIAL

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