TNAG-1912-FCO40-2716-Financial-assistance-from-the-UK-Government-to-Vietnamese-re-1989 — Page 31

201

CONFIDENTIAL GF Reference..

Hasyell. Hong Kong Dept

Mr Haswell

ASSISTANCE TO VIETNAM

1.

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Miss Hamar

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You asked about possible Japanese reactions to a UK proposal for some form of joint assistance to Vietnam.

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2. The Japanese may well be quite sensitive about this. Japanese aid to Vietnam was cut off following the invasion of Cambodia. In a meeting between the then Japanese Foreign Minister Mitsuzuka and Co Thatch in July this year - the first Japanese/Vietnam ministerial for five years - Mitsuzuka told Thatch that Japan would extend aid to Vietnam only after peace had been restored in Cambodia. This is in line with the ASEAN view: aid can only be resumed to Vietnam once Vietnamese troops have withdrawn from Cambodia, free elections have been held and neutrality maintained. The Japanese would be very reluctant to break ranks with ASEAN over aid to Vietnam. They would also be wary of critical American reactions: when I was discussing possible UK economic assistance in the boat people context with someone from the Japanese Embassy recently, his first comment was that the Americans would be very hostile to any moves of this kind.

3.

Japan does give a small amount of humanitarian aid to Vietnam (eg 150,000 dollars of typhoon aid in 1987, and an emergency aid package of 300,000 dollars in November this year), some cultural support and various small technological cooperation grants (0.29 million dollars in 1987). Japan also provides some ODA loans to Vietnam, but these amounted to only 0.2% of the total loans made by Japanese Overseas Economic Cooperation Fund last year. It would be difficult to persuade the Japanese to offer any more substantial aid, unless it was presented as some form of international initiative, in concert with western partners or as a UN package.

HKB 243/11

11 December 1989

Philyn Leriehus

P Leslie-Jones (Miss) Far Eastern Department K211

270 2956

LJ4ABX

CONFIDENTIAL