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Tjibaou could be squeezed out, letting in the extremists.

HONG KONG/CHINA

15. Lord Glenarthur said that though the issue of direct elections had been given unfavourable publicity in the British press, things were in fact going very well in Hong Kong. The achievements thus far were very satisfactory. There was a continuing problem over Vietnamese refugees. We were grateful to New Zealand for taking a considerable number. We would continue to press for a proper solution to this problem and hoped for continuing international support.

CAMBODIA

16. There was lines.

AFGHANISTAN

a brief discussion of Cambodia on standard

17. Mr Marshall asked about Afghanistan. Lord Glenarthur explained the current - very difficult position in some detail. We were looking closely at the problem of what to do when the Russians left and were aware of the need to consult our friends in this respect. Mr Marshall said New Zealand would be happy to cooperate in any way possible. Pakistan might look to a Commonwealth country such as New Zealand more than towards the United States for help in this area, in view of its desire to return to the Commonwealth. Lord Glenarthur welcomed New Zealand's interest.

There might

be scope for help over, for example, post settlement aid.

TAIWAN

18. Mr Marshall said that he sensed there was less paranoia in mainland China over the question of Taiwan. Changes of leadership in Taipei might have helped reduce Chinese edginess.

19. Mr Harland pointed out that China could tolerate the present situation so long as Taipei did not claim the existence of two Chinas. Trade relations by third countries with Taiwan were permissible to the PRC but political acknowledgment of the existence of an

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/ independent

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