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CONFIDENTIAL

FM KUALA LUMPUR

TO PRIORITY HONG KONG-

TELNO 3

INDE

OF 220856Z OCTOBER 193

INFO PRIORITY FCO

2 5 OCT 1993

27

174522

MOLIAN 5312

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HONG KONG TELNO 1609 TO FCO: BUMIPUTRA MALAYSIA FINANCE LTD (BMFL)

1.

Tengku Razaleigh Leads one of Malaysia's opposition parties, Semangat 46, created following the split in UMNO in 1987. Support for Semangat 46 has been declining steadily over the past year or so, and Tengku Razaleigh himself, although still a thorn in the Government's flesh, has little real influence. Recent rumours (FCO telno 307) have turned on the possibility that Ghaffar Baba, having lost the battle for the Deputy Presidency of UMNO to Finance Minister Anwar Ibrahim, might join Semangat 46: we think this unlikely.

2.

We see no/no overriding reason to object to your proposal to seek a deposition from Razaleigh. There is some risk that Razaleigh might seek to use the opportunity to embarrass the present Government. It would be desirable, therefore, to handle the matter in as low a key a fashion as possible.

SLATER

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SIR J COLES

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MR MASEFIELD

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