TNAG-0561-FCO40-656-Review-of-narcotics-problem-in-Hong-Kong-1975 — Page 108

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in order to deter them from lancing poppies due to ripen in the next few weeks. Martens claimed to be confident that the TL 18 price is on the high side and that there will be no need for recourse to the contingency fund.

3. Since Martens asked for our comments, "as a major contributor to UNFDAC", we felt it necessary to tell him, with appropriate expressions of regret, that there is to be no UK contribution to the Fund, in 1975/76. We explained that the decision was due only to our present financial circumstances; and referred to Chris Train's recent favourable impressions of the Fund's operations in Pakistan to add weight to this point. Martans confirmed that he had already heard of our decision, which he regretted very much, but he hoped that our economic circumstances would be sufficiently improved next year to allow a future contribution. Nevertheless, Martens said he would still value our views on the Fund's operations in Turkey. then ran through the arguments given in Robin Oaten's letter UM 45/7 of 16 May, throwing in that, since the establishment of a contingency fund was now a fait accompli, we thought that HMG would take some comfort from the fact that drawings were subject to strict conditions and that the money would be available for one year only in the first instance. Mårtens thanked us for our views, which to some degree reflected his own, but stressed that Turkey was a very special case and that something of the sort that had been agreed was essential for both political and psychological reasons.

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Before we left Martens we said that we assumed that he would wish to have written confirmation of the decision on our 1975776 contribution to UNFDAC. He confirmed that this would be helpful. Perhaps the best way to do this would be for the Ambassador to write to Martens making in the process the following points:

(a) (b)

The decision not to contribute applies to 1975/76 only.

The decision is due to our present difficult financial situation and does not reflect on the operation of the Fund. (c) We shall continue to help in other ways (Robin Oaten's letter of 27 May, paragraph 4).

(a) The decision will be given no publicity.

We should be grateful for early comments and instructions.

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5. Finally, Sir Frederick Mason told me after our meeting with Mårtens that Ambassador Lagerfelt of Sweden had begun a telephone conversation with him expressing his regret at Mårtens intended departure. Lagerfelt did not elaborate on this, but it does seem to us to account in some degree for Mårtens' remarkably serene reaction - even taking account of the rumours he had already heard - when we told him about the suspension of the UK contribution. According to Sir Frederick, it is now almost certain that the current Netherlands Ambassador to the UN in New York will take over the Directorship of the Fund in September. The choice of a Netherlands national for this job must, I am sure, raise some doubts in the minds of at least two EEC members (ie. Francesand FRG) who are unhappy with that Government's current narcotics policies!

E W Callway

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