India
Ray expressed some concern at the disproportionate build-up of India's naval power. There was no direct threat to Australia but he did not like the look of the possible threat that it might pose to the sea-land of the region. He also thought it possible that India might indulge in a little gun-boat diplomacy against Fiji and elsewhere where there were Indian minorities (eg Malaysia) if it thought that its citizens were being unduly oppressed.
New Zealand
Ray saw no signs of movement on the New Zealand anti- nuclear policy until after the next election. He believed that they should change the policy. Australia had had to "tough it out", and New Zealand should have done likewise. They were now trying to eat their cake and have it. He appreciated that Bolger had problems over this but they were largely of his own making.
When asked what arrangements Australia was making for the 50th anniversary celebrations, Ray replied that the subject had not been raised with him. It was of no real significance. The two navies exercised together more than twenty times a year and no doubt something suitable would be arranged in due course.
Ray concluded the meeting by saying that he was full of admiration for the UK over their showing in the Gulf conflict; not only for the courage of the military but for the steadfastness of the government and for the rate at which they had acted. He added his gratitude for all the assistance with intelligence material and noted the particular appreciation all Australians felt for the way the Prime Minister had kept Mr Hawke in touch over the telephone.
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