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going: the infrastructure had been badly damaged and the BDR were acting like a "poor man's Khmer Rouge" but PNG has a potential and resources way beyond anywhere else in the Pacific, and the Committee thought if it could resolve its security problems it could well take on a regional role.
Hong Kong
Lord Caithness was asked a succession of questions on the transfer of sovereignty, the SAR, passports, crime and Vietnamese Boat People. His replies were received by the Committee with interest and, in general,
in general, approval. The only comment came from Sinclair, who said that many Hong Kongers were coming to Australia to obtain residential status and then returning to Hong Kong leaving their families behind (a point we also heard in Sydney and Melbourne).
Malaysia
McKellar said that Australia had on-going problems with Malaysia; Mahathir seemed intent on isolating Australia from the rest of the region. Lord Caithness sympathized, saying that Britain also had had problems caused by the sensitivities of Mahathir in the past, and that considerable effort had to be made to get relations on the right track again.
South Africa
Schacht asked how HMG viewed the statement issued after the meeting of the Commonwealth Co-ordinating Committee in London in February. Lord Caithness spoke of the need to give President de Klerk support by easing sanctions. He thought that if Australia had difficulties over economic sanctions, their first step could be the re-introduction of sporting contacts. Schacht (who has recently visited South Africa) doubted whether de Klerk would have as much trouble with his right-wing as the ANC would have with their militants. He went on to ask whether, as a matter of general principle, Britain would choose a Commonwealth or an EC approach to world issues, given her ties to both. The Minister said that it would depend on the issue; for example, over South Africa, Britain was closer to EC views; on the GATT round, we were closer to the Commonwealth.
Fiji
McKellar sought HMG's views on the new draft constitution, and whether we would welcome Fiji back into the Commonwealth.
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/Lord Caithness