TNAG-0800-FCO40-1004-Implications-for-Hong-Kong-of-changes-in-British-Nationality-1978 — Page 47

MEMO from Lord Elton

MALAYSIA

Kuala Lumpur

1. Tan Sri V Manickavasagam:

Minister of Communications

At present almost 70% of all remittances made overseas from Malaysia go to the UK but the generation which was brought up to regard Britain almost as its base is passing away. We have to retain this close connection in the rising generation. In this context, recent increases in student fees have given a considerable shock to the Malaysians and they regard them as incomprehensible and regrettable.

Current difficulties over Concord are clearly for the most part a result of the rough treatment the Malaysians got over the allocation of flights into London by their DC10's. Manickavasagam himself was in London having open heart surgery during those negotiations. He plainly still felt somewhat shocked by the treatment his negotiating team had received. He clearly shares the general view that we take Malaysia far too much for granted. I fear he is right.

There is an enormous fund of good will for us, but it is being drawn upon more heavily than it is being replenished.

2.Datuk Amar Haji Taib Mahmud: Minister of Primary Industries

The only two ASEAN countries with planned resources of tropical timber are Malaysia and Indonesia. The Thais have almost exhausted theirs (and plan shortly to begin importations from Laos). He wishes to programme production and replenishment. As a fall in timber prices increases the rate of extraction, it is necessary to achieve a stable price. He is therefore a strong advocate of the Common Fund as a means of price stabilisation. He will only attend the next round of UNCTAD talks at Geneva in person, however, if material progress seems likely. Otherwise he will send a deputy.

Funds for stockpiling are normally at least self-financing, if not actually profitable (cf tin). Developed countries would be asked for an initial subscription, possibly to be paid up over a number of years, and not for an open ended commitment.

3.

Tan Sri Ghazali Shafie:

Minister of Home Affairs

The security situation in Malaysia is entirely under control. (The early return of the PM from Australia - quite possibly on hoax telephone call. They were much put out by the Australians' handling of the affair, as they had no prior notice of the PM's decision to return and were not consulted by the Australians about the advice to be given)

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