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UK EYES ONLY
6.10. Mental plat
8.
C.
d.
e.
and they were constantly under great pressure to 'oscalato' further. MR. LLE KUN YEW felt that the Americans would find it difficult to resist this pressure. The Vietnam situation was another factor which argued against an announcement by th British that they would leave the mainland of Asia in the mid 1970s.
Entry into E.E.C.
MR. HEALEY said that HMG were likely to reach an carly decision on the issue of application to enter the SEC. He omphasised that, whichever way the decision went, it would not affect the Government's new approach to its defence policy in the Far East.
China
MR. LEE KUN YE.. agrood that the activities of the Red Guard were having a most damaging offect on public support for Poking, though the Communist Party in Singapore was little affected in practice.
Investment in Singapore
MR. LEE KUN YE confirmed that the Japanese were increasing their investment in Singapore; in his view, they were now beginning to show greater political and economic strength in the Far East. He said that Jurong had, generally spooking, recovered from the shock of separation from Malaysia. Meleyen Chinese were also beginning to invest in Singapore on an increasing scale, sometimes going so far as to put their capital into the island while operating off an overdraft in Malaysia, Although the new policy which Mr. Healey had outlined would have had an even more damaging effect if it had come two years earlier, the recent recovery in the Singapore economy emphasised the need to cvcid, so for as possible, any seriously damaging impact on confidence.
;
The
Mr. Healey and Mr. Lee Kuan Yew came ashore at about 16.15. Prime Minister's approach throughout the meeting was constructive and friendly and, at the end of it, he had virtually become his robust and vigorous self again.
SECRETARY OF STATE'S OFFICE
APRIL, 1967
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