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China saw it in anyone's interest to develop a different tack. Mr Yatiman said it was very much in Singapore's interests that Hong Kong continued to flourish and hoped for a peaceful solution. Mr Goodlad pointed out that the UK shared these interests. which was why we had put forward the proposals. We had to realise the Basic Law requirements on issues such as rule of law and establishment of appropriate institutions. He stressed that if the Chinese preferred to put forward different proposals and they were fair and acceptable to Hong Kong, the UK would recommend their acceptance by the Legislative Council.
3. Mr Yatiman hoped that the momentum of change in China would continue; but it was unclear whether, after Deng, young and more pragmatic people would take charge and continue the reform process. Mr Goodlad said his Chinese interlocutors had all given the impression that the reform process was irreversible.
4. Mr Yatiman said Singapore was following closely the situation in Burma. The ASEAN countries were keen to draw the Burmese out of their long period of isolation step by step. Strong and immediate pressure could be counter- productive and close the door to change; that could be a source of instability in the region. Mr Goodlad wondered whether the Burmese would attend the forthcoming ASEAN Ministerial meeting. Mr Yatiman said there was a debate within ASEAN on this. Thailand was keen to see the Burmese there, Malaysia had reservations. This would be discussed by senior officials in May; the issue was whether inviting the Burmese would serve the ASEAN objective of drawing them out step by step. Without a consensus, the Burmese would not be invited.
5.
Turning to Europe, Mr Yatiman identified differing views on security arrangements. The UK seemed committed to the Atlantic alliance while Germany and France seemed to be looking at European arrangements. Mr Goodlad did not think the Germans would deviate from the realisation that NATO was a workable and effective structure.
6. Mr Yatiman highlighted the importance of AFTA. Singapore was well-placed and wanted rapid progress; but it was better for countries such as Thailand and Malaysia to set the tempo. Mr Yatiman was confident that the 15 year time frame was achievable. AFTA would have benefits not only for the region, but could also help contribute to the development of EC/ASEAN cooperation. Mr Goodlad asked whether Vietnam would join ASEAN. Mr Yatiman said ASEAN wanted the gap between it and Vietnam to be closed, which
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