CNG 800A
CONFIDENTIAL
CONFIDENTIAL
DESI 210100Z (KUALA LUMPUR)
FROM PCO 2017542 JUL 79
T) IMMEDIATE KUALA LUMPUR
TELEGRAM NUMBER 207 OF 20 JULY
*** 184/1
2.3. PA,
337
HIFO PRIORITY HONG KONG (GOVERNOR AND BCARFE) SINGAPORE BANGKOK
MANILA JAKARTA CANBERRA WELLINGTON
See (339
358 386
UK/MALAYSIA AIR SERVICES
1. AFTER LENGTHY NEGOTIATIONS DURING THE WEEK, A SETTLEMENT WAS FINALLY REACHED THIS AFTERNOON (20 JULY) THE ATMOSPHERE WAS
FRIENDLY THROUGHOUT. MANICKAVASAGAM HAD A DINNER AND A SEPARATE
PEETING WITH THE SECRETARY OF STATE FOR TRADE, AND WAS QUITE
CONTENT TO CONDUCT SUBSTANTIVE NEGOTIATIONS WITH MR TEBBIT,
2. THE ONLY JARRING NOTE CAME THIS MORNING WHEN MANICKAVASAGAM, WHO HAD PREVIOUSLY AGREED TO EXCHANGE WITH MR NOTT LETTERS RECORDING THE TERMS OF THE SETTLEMENT, SAID AT THE LAST MINUTE THAT HE COULD NOT SIGN BEFORE HE HAD CONSULTED HIS PRIME MINISTER AND CABINET COLLEAGUES AT HOME. HE ASSURED US, HOWEVER, THAT THERE WOULD BE NO DIFFICULTY, AND THAT HE WOULD CONFIRM HIS AGREEMENT THROUGH YOU OR HIS HIGH COMMISSION IN LONDON BY THE MIDDLE OF NEXT
WEEK. WE UNDERSTAND THAT THE MALAYSIAN CABINET MEETS NEXT WEDNESDAY
AND IS LIKELY TO REVIEW THE QUESTION THEN. LETTERS WERE THEREFORE
EXCHANGED BETWEEN HAMZAH AND ROBERTS SETTING OUT THEIR UNDER- STANDING (SUBJECT TO CONFIRMATION BY THEIR RESPECTIVE MINISTERS)
THAT THE DRAFT OF THE LETTER TO BE EXCHANGED BETWEEN MINISTERS
ACCURATELY. REFLECTED THE AGREEMENT REACHED BETWEEN THE TWO SIDES.
MIFT CONTAINS THE TEXT OF THE DRAFT MINISTERIAL LETTER, MY
SECOND IFT CONTAINS THE TEXT OF A SIDE LETTER FROM ROBERTS TO HAMZAH ABOUT DISCOUNTING PRACTICES, WHICH HAMZAH HAS FROMISED TO CONFIRM ON HIS RETURN TO KUALA LUMPUR.
3. WE HAVE CONCEDED A GENEROUS SETTLEMENT TO THE MALAYSIANS,
WHICH TAKES ACCOUNT OF THE WIDER POLITICAL RELATIONSHIP BETWEEN
THE TWO COUNTRIES ON WHICH MALAYSIAN MINISTERS, INCLUDING THE PRIME MINISTER, HAVE LAID SO MUCH STRESS. NO DOUBT YOU WILL TAKE ANY SUITACLE OPPORTUNITES TO MAKE THIS POINT. WE HAVE TO HOPE THAT OTHER ASEAN GOVERNMENTS WILL NOT REGARD THE OUTCOME AS A
CONFIDENTIAL
/GREEN
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