TNAG-1525-FCO40-2089-Hong-Kong-Parliamentary-Sub-Committee-on-Race-Relations-and--1986 — Page 170

CONFIDENTIAL

atcks. Austria believed that the Vienna attack may have been

organised from Syria. This was why Austrian criticism of Libya had been muted. The Secretary of State agreed that it was important to continue trying to find a solution in the Middle East. There were

no easy answers. Israel was entitled to recognition but so too was

Palestine.

East/West Relations

2.

Dr Steger asked for the Secretary of State's views on Gorbachev's opening address to the Soviet Party Congress.

The

Secretary of State said that Gorbachev seemed to be living up to reasonable expectations as a young Soviet leader. His address had included a great deal of ideological froth. The agenda he had outlined for economic reforms would take a long time to implement. On China it was interesting to note a feeling of unease that the two great Socialist nations should be at loggerheads. The Secretary of

State did not believe that Gorbachev's remarks about arms control

had been dismissive. He believed the West needed to keep up the

pressure. Dr Steger remarked that there seemed to be a degree of optimism in the countries of Eastern Europe that they might develop greater independence. Hungary was an example.

3. Referring to the November CSCE Review Meeting in Vienna, Dr Steger said it was important not to expect too much. Though there had been no great achievement on the Soviet side, it was beyond question that the CSCE process was important. The Secretary of State agreed and said that it was important to maintain the momentum of the CSCE process, thus keeping up the pressure on the Soviet Union.

Vietnamese Refugees

4.

The Secretary of State mentioned the problem of Vietnamese refugees in Hong Kong. We had been asking friendly countries to consider taking some of these. Could Austria take refugees with close relatives already in Austria? Dr Steger said that this would be considered though he could make no promises. Dr Thomas mentioned the difficulties in integrating Vietnamese refugees in European

countries.

The meeting ended at 1625.

CONFIDENTIAL