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The following items were discussed later in the talks but are

recorded here for the sake of logic.

MALAYSIA

*

10. The Russians said that Rutskoi's visit had been the first

high-level Russian visit to Malaysia. They hoped that this

would be the start of good relations. Russia was negotiating to

sell a small number of planes and helicopters to Malaysia but

there was no reason for other countries to be worried by this.

Rutskoi had discussed the deal with the Malaysian Prime

Minister. Russia saw many possibilities for increasing trade

links with Malaysia.

11.

We said that the UK would of course be disappointed if the

Malaysians chose to buy from the Russians instead of from us.

It was also important that sales of sophisticated weaponery

systems to countries which had not had them before were

monitored for potentially destabilising effects. The

economically successful countries of South-East Asia had money

to spend and the end of the cold war meant that there was a

surplus of weapons for sale in the world. These factors might easily combine into an arms race amongst the Asian tigers.

THAILAND

12. The Princess of Thailand left Russia last week after a

visit at the invitation of the Russian Parliament. The Russians

hoped to receive the Thai Foreign Minister and Deputy Prime

Minister soon. Russia wanted to become more active in its

relations with Thailand.

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