TNAG-0862-FCO40-1072-Involvement-of-Hong-Kong-in-air-services-agreements-1979 — Page 50

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CORTAZZI CONCLUDED BY BRIEFING RAJARATNAM ON DEVELOPMENTS IN ANGLO-CHINESE RELATIONS. RAJARATNAM COMMENTED THAT THERE WERE THOSE IN ASEAN WHO FEARED THAT ONE MOTIVE BEHIND THE SINO-US NORMALISATION WAS TO PUT CHINA FORWARD TO FIGHT IT OUT WITH THE SOVIET UNION, THIS WAS A VERY DANGEROUS PROPOSITION. HE ALSO EXPRESSED CONCERN THAT CONCENTRATION ON THE CHINA MARKET HIGHT LEAD TO ASEAN BEING BYPASSED. CORTAZZI REASSURED HIM ON BOTH SCORES. THE SO-CALLED CHINA CARD WAS NOT GOING TO BE PLAYED BY

US AND HE DOUBTED WHETHER IT WAS A REAL ONE.

13. AIR SERVICES WAS NOT MENTIONED, ALTHOUGH RAJARATNAM'S EMPHASIS ON THE NEED FOR WESTERN ECONOMIC SUPPORT FOR ASEAN UNDOUBTEDLY EMBRACED HIS CONCERN ON ICAP. THE CHAIRMAN OF THE ECONOMIC DEVELOPMENT BOARD, NGIAM TONG DOW, HAD EARLIER CHIDED CORTAZZI ON ICAP, TAKING THE LINE THAT BRITAIN LIKE SINGAPORE WAS A TRADITIONAL CROSS-TRADER IN AVIATION AS WELL AS SHIPPING AND THAT IT WAS SHORTSIGHTED OF HER TO SUPPORT THIS PROTECTIONIST

AUSTRALIAN POLICY.

HENNINGS

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