CONFIDENTIAL 2

Vietnamese Boat People

The Prime Minister raised the subject of Vietnamese Boat People. There were now more than 55,000 in Hong Kong. Although the rate of arrivals had slowed down a little, it remained a major problem. So far we had tried to persuade a number of those who were economic migrants rather than genuine refugees to accept voluntary repatriation. But unless the situation could be eased, we should have to resort to compulsory repatriation. She wondered how the boat people who had arrived in Japan were being dealt with.

Mr. Nakayama said that, at the Paris Conference on Cambodia, he had seen the Deputy Foreign Minister of Vietnam and demanded a systematic control of the outflow of refugees and migrants from Vietnam. Some of those arriving in Japan had been Chinese and they would be sent back, forcibly if necessary.

Japan had

a quota of 10,000 for genuine refugees from Vietnam and had so far settled 6,300. More recently, they had informed the United Nations High Commissioner for Refugees that they would accept a further 1,000 over three years. The Prime Minister said that it was urgent to establish the processing centre in the Philippines for refugees which had been agreed at the Geneva

Conference.

Cambodia

The Prime Minister said that the outcome of the Paris Conference on Cambodia had been a disappointment. Presumably Hun Sen would simply carry on. Mr. Nakayama said that the question of Indo- China was very relevant to peace and security in the Pacific area as a whole and Japan hoped that a comprehensive agreement could still be achieved. The Prime Minister doubted whether

a realistic aspiration in present circumstances.

Soviet Union

The Prime Minister said that she would be seeing Mr. Gorbachev on her way back to the United Kingdom. He clearly faced great difficulties, both over the economy and the nationalities. But she remained convinced that the right course was to continue to give support and encouragement to Mr. Gorbachev's policies. It would take time for economic reform to produce results in the form of an improved standard of living.

Mr. Nakayama said that he entirely shared the Prime Minister's view. Japan was grateful for the understanding shown for its position on the Northern Territories. He hoped the Prime Minister would impress on Mr. Gorbachev when she saw him that a settlement of this issue was vital for the conclusion of a peace treaty between the Soviet Union and Japan. He would himself be seeing Mr. Shevardnadze in New York. In response to the Prime Minister's question, he confirmed there had been no recent change in the Soviet position. The Prime Minister said that Mr. Gorbachev

CONFIDENTIAL

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