TNAG-2478-FCO40-3608-Trade-relations-between-Hong-Kong--the-UK-and-other-countrie-1992 — Page 16

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emerging economic fora and assessing the prospects that closer political relationships would follow. He said that he already had in mind a study on South East Asia and in particular the changing role of ASEAN. To the extent that the ASEAN countries viewed themselves as the possible nucleus of such wider

economic groupings as APEC, this study would be a contribution to the wider theme;

iii) I also encouraged Dr Ferdinand to consider the scope for work on regional security, taking in such aspects as military developments in China, Japan and the Korean Peninsula; the increased tension in the South China sea; and the significant arms purchases in South East Asia. He said there was always some inhibition at Chatham House about trespassing on the territory of the IISS, but he would consider with his colleagues who worked more directly on security issues whether there was something to be done;

iv) we agreed that the focus on Korea over the next year was likely to be at the IISS, in view of Dr Hoare's imminent secondment there;

v)

finally Dr Ferdinand said he was anxious to set in hand work on India.

4. I understand that you take part in the Chatham House Board which discusses future research projects, and that towards the end of the year there will be discussions with Chatham House on suitable projects for FCO financing in the next financial year. I should be most grateful if you could keep me in touch with those discussions. Mr Masefield will have views on the scope for Chatham House work on South and South East Asia, and on general regional issues. For myself, I hope we can give encouragement to work on the South China/Hong Kong/Taiwan relationship, and on the regional security issues which are likely to loom increasingly large in years to come.

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