The Thais were enthusiastic about these themes. On the economic side, there had been some discussion about the role of the EAEC as a caucus within APEC. The Indonesians, North Americans, Australians and some others were not enthusiastic but the outcome had saved Dr Mahathir's face. Australia would prefer a fluid liberal trading environment. EAEC was too exclusive: APEC was the main game. Participants had shown a remarkable degree of commitment; including President Clinton (for domestic and more purely intellectual reasons). Preparations for the Seattle. APEC meeting were now under way. There should be, no problems over the meeting at Foreign and Trade Minister level but the proposed meeting of Heads of Governments still had to be worked out (it had been suggested originally by Mr Keating). This was likely to take on an informal character rather than leading to a substantive outcome. The Taiwan and Hong Kong issues had still to be finessed.
But
6. Mr Goodlad had been impressed at the personal chemistry exhibited at the EC/ASEAN meeting in Manila last October. the EC had rushed its fences on the relationship with APEC. In due course there should be a relationship which developed at a pace at which people felt comfortable. Regionally, the UK had enormous security interests. We were increasingly active players and putting in more resources. We would remain engaged. Hong Kong would go, but Brunei and the Five Power Defence Arrangement were still extant. The UK's P5 and peacekeeping roles meant that we would wish to participate in any debates on regional security. Senator Evans said that this was not unreasonable. The ASEAN PMC and APEC philosophy was open regionalism, not exclusivism. But the issue of an EC presence at the APEC table was unresolved. Many thought that only the regional players should be core members. Sharper distinctions might therefore arise between members and observers but there was no question of closing doors. So far only disparate exchanges had taken place. He recognized the UK's "differential interest" in regional security, vis-a-vis other EC members.
7. Senator Evans asked about China and Hong Kong. Mr Goodlad said that the future of the Chinese leadership was opaque. China had many worrying economic and social problems. The fragility of decision making did not help in the context of Hong Kong, where he was grateful to Australia for its support for the British position. Confidence in Hong Kong was high at present but China could be unpredictable. The airport was progressing gradually and the project was nearly at the stage where a further delay would harm Chinese interests. An austerity package in China could harm Hong Kong. broke out, anything could happen.
Copy to PS/Mr Goodlad
Mr Masefield
Mr Guest, SPD
Chancery, Canberra
PS/Mr Goodlad 6 August 1993
If disorder