195. Memorandum of Conversation1

PARTICIPANTS

  • U.S.

    • President Carter
    • Vice President Walter Mondale
    • Warren Christopher, Deputy Secretary of State
    • David Aaron, Deputy Assistant to the President for National Security Affairs
    • Robert Miller, Ambassador to Malaysia
    • Richard Holbrooke, Assistant Secretary of State for East Asia
    • Michael Armacost, Staff Member, NSC
  • Malaysia

    • Prime Minister Hussein bin Onn
    • Rithauddeen bin Ismail, Foreign Minister
    • Datuk Zakaria, Secretary-General, Ministry of Foreign Affairs
    • Zain Azraai, Ambassador to the United States
    • Tan Sri Thong Yaw Hong, Director-General, Economic Planning Division, Prime Minister’s Department
    • Anitullah Karim, Counselor, Malaysian Embassy

Following the President’s 20 minute private meeting with Prime Minister Hussein,2 he indicated that he had conveyed his approval in principle to the sale of a small nuclear research reactor and related fuel, subject to the negotiation of adequate safeguards arrangements. The President described the private discussion in general terms noting that he and Prime Minister Hussein had exchanged views on our respective relations with Japan, China, Thailand, ASEAN, Taiwan, and Vietnam. He indicated that on the basis of this exchange, he judged that our approaches were compatible.

Prime Minister Hussein had, the President said, specifically expressed the hope that as we moved toward normalization of our relations with Peking, we would honor our obligations to Taiwan. The President indicated that while we are eager to see Japan and Australia play a more active and constructive role in Southeast Asia, they will not be our spokesman in the region. We will speak directly to the states of the area.

The President noted that they agreed that we share a joint interest in stabilizing the prices of commodities. He expressed his admiration for the superb economic performance of Malaysia, noting that we have much to learn from Malaysia’s ability to sustain a very high rate of economic growth while reducing inflation to less than 3 percent. He emphasized the U.S. intent to retain a strategic and economic presence in Southeast Asia, and to place our access to defense facilities in the Philippines on a durable basis. He underscored the fact that our first priority in Southeast Asia is to consolidate our ties with friendly non-Communist governments in the area, but added that we also will seek to improve our relations with countries possessing other political and social systems. The President expressed appreciation for the helpful contribution of Minister Kadir of Malaysia in the Law of the Sea negotiations. He suggested that we still have a drug problem in Southeast Asia, and that we intend to continue applying our energy and resources to reducing this drug traffic. He mentioned that the Vietnamese refugee [Page 673] problem also touches both of our countries, and that we share a special interest in alleviating the plight of the “boat” cases.3

Finally, the President expressed his appreciation for the frank way in which Prime Minister Hussein had related his views. He invited Hussein to feel free to offer advice on any subject or call his attention to any problem through direct communication by letter or a call. The President then invited the Prime Minister to offer any views he had on these subjects or other matters.

Prime Minister Hussein referred first to the drug issue, acknowledging that this has become a matter of increasing seriousness to Malaysian youth, given the easy access to drugs in the region. His government, he said, has consequently undertaken a more energetic and systematic campaign to deal with this.

With respect to refugees, Prime Minister Hussein noted that Vietnamese refugees are coming to Malaysia in large and growing numbers. While his government was doing what it could to mitigate the plight of such refugees, there was a limit to the burdens they could assume. Hussein said that his main concern is with the longer term trend, since he feared that the number of refugees will continue to increase over time.

The President asked whether there was any prospect of getting other Southeast Asia governments to accept more refugees.

Prime Minister Hussein indicated that Singapore was reluctant to adopt a more liberal approach given its small size; Indonesia had limited resources; Thailand already has more than it could handle; Australia already has increased slightly the numbers of refugees it will accept.

The President indicated that we will try to do more ourselves while encouraging the nations in the area to step up their own individual and joint efforts to deal with the problem.

The President asked what specific steps the Malaysian Government has taken to deal with the drug problem.

The Prime Minister indicated they have arrested some smugglers, though for every one caught, there are nine or ten who are not apprehended. He noted the difficulties they face in this area, given the relative ease with which people can move in and out of Malaysia along the Thai border and along their long coastline.

The President asked if any poppies were grown in Malaysia and whether any processing of drugs took place there.

[Page 674]

The Prime Minister indicated that no poppies were grown but some processing had occurred within his country. He added that his government applies very strict laws in this field, including the enforcement of the death penalty against serious violators.

The President indicated that if Prime Minister Hussein had any thoughts as to how we might cooperate further in this field, that he would welcome suggestions.

Warren Christopher noted that we have great admiration for the exemplary record by Malaysia in the field of human rights.

Prime Minister Hussein said he understood the strong feelings which President Carter had expressed on this issue. He described his own government as a democratic regime which governs with the consent of the people through representative institutions. Since 1966, he said, Malaysia has had an Internal Security Act which is necessary in the light of a continuing threat of subversion in Malaysia. He added that his government utilizes preventive detention measures sparingly, and has been careful to treat violators with restraint. He acknowledged that opposition politicians criticize this legislation, but the government must think first of the safety of the majority. In any event, he said, international groups are welcome to visit Malaysia to review the treatment accorded those who violate the Internal Security Act.

The President presented Prime Minister Hussein with an autographed copy of his book, Why Not The Best?, and a portfolio of photographs of the earth taken from cameras aboard one of our satellites.

  1. Source: Carter Library, National Security Affairs, Staff Material, Far East, Armacost Chron Files, Box 4, 9/24–30/77. Secret. The meeting took place in the Oval Office and the Cabinet Room at the White House. Hussein was on an official visit to the United States September 23–October 5.
  2. No memorandum of conversation of the private meeting has been found.
  3. See footnote 2, Document 153.