CONFIDENTIAL

FM KUALA LUMPUR

TO DESKBY 16083OZ FCO

TELNO 619

OF 16030OZ NOVEMBER 88

CONFIDENTIAL

MKD 243/5

M

205

150520

MDHIAN 1767

PA Vbp

16111

U

INFO ROUTINE BANGKOK, JAKARTA, SINGAPORE, BANDAR SERI BEGAWAN, MANILA INFO ROUTINE WASHINGTON, UKMIS NEW YORK, TOKYO, PARIS, HONG KONG INFO ROUTINE UKREP BRUSSELS, HANOI, PEKING

FROM PS/LORD GLENARTHUR

LORD GLENARTHUR'S CALL ON DR MAHATHIR

SUMMARY

1. ONE AND A QUARTER HOUR CALL. MAHATHIR IN AFFABLE MOOD. SOME

SENSITIVITY ON FREE TRADE POST-1992. MEETING OF MINDS ON VIETNAMESE

BOAT PEOPLE AND CAMBODIA. SATISFACTION WITH FIVE POWER DEFENCE

ARRANGEMENTS (FPDA): NO MALAYSIAN OBJECTION TO BRUNEIAN ACCESSION. MAHATHIR PUT ONUS ON MALAYSIAN MILITARY FOR PROGRESS ON DEFENCE PACKAGE (BUT SEE PARAGRAPH 2 BELOW). MAHATHIR PLEASED WITH PLANS ON SAIL TRAINING SHIP. GOOD DISCUSSION OF DRUGS AND AIDS: MAHATHIR'S

DEEP CONCERN CLEARLY GENUINE.

2. STANDARD PITCH ON AIR SERVICES (ASAS). DEEP FRUSTRATION WITH BA (AND WITH SINGAPOREANS). PRESSURE FOR GOVERNMENT INTERVENTION. STRONG, IMPLICIT THREAT TO LINK OTHER DEALS WITH SOLUTION OF ASA IMPASSE.

DETAIL

3. LORD GLENARTHUR CALLED ON MAHATHIR ON 15 NOVEMBER. THE CALL WAS POSTPONED FROM 14 NOVEMBER, AS MAHATHIR HAD 'FLU. ALTHOUGH NOT FULLY RECOVERED, HE GAVE A FULL ONE AND A QUARTER HOURS OF AMIABLE CONVERSATION. MR SPRECKLEY WAS ALSO PRESENT.

MALDIVES

4. AT MAHATHIR'S REQUEST, LORD GLENARTHUR DESCRIBED HIS VISIT TO THE MALDIVES. MAHATHIR SAID THAT INDIA HAD BEEN BEST PLACED TO HELP,

AND HAD NOT NEEDED TO TAKE UP MALAYSIA'S OFFER OF ASSISTANCE. THE INCIDENT HAD PUT THE SECURITY OF SMALL STATES BACK ON THE INTERNATIONAL AGENDA.

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