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8. Dr Mahatir said that during his visit to Kuala Lumpur the Japanese Prime Minister had been ambivalent about Japan's international responsibilities but had seemed to accept that Japan should play a larger role within a UN framework. taken care to seek Malaysian and other regional views. Dr Mahatir said that he was not worried at the prospect of a greater regional role for Japan. Indonesia and the Philippines were more concerned. He believed that Japan would play a greater role, eg. in implementing the UN plan for Cambodia.
Bilateral relations
9. Lord Caithness referred to the excellent state of relations between the UK and Malaysia. He welcomed
Dr Mahatir's recent speech promoting English as the second language. He was delighted that the Pergau project was going ahead with major ATP support and hoped that the contracts could. be finalized very shortly. He knew that the Prime Minister was looking forward to seeing Dr Mahatir in June. Dr Mahatir thanked Lord Caithness for HMG's support for Pergau. This had been very warmly welcomed. Malaysia needed a major expansion of its energy capacity if the present rate of economic growth was to be sustained. In 1990 investment proposals had amounted to US $15 billion. The Malaysian Government had to invest correspondingly in local infrastructure if these investments were to be feasible. The problem was finding the money.
13 May 1991
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Peter Tibber
PS/Lord Caithness
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