Vladivostok and said that the Soviet movement toward our position indicated that they were not as strong as some had believed. Their acceptance of equal numbers without counting FBS actually give us a numerical advantage.
"-- I noted briefly that our relations with Europe, including France, had considerably improved since my last visit to China.
"-- I reviewed the agreements in the Middle East and the erosion of Soviet influence over the past year and said that I thought gradual progress was still possible. I pointed out that our domestic situation required a step-by-step process. We are working quietly behind the scenes, and we would in any event never move in response to Soviet pressure.
"-- With regard to the South Asian sub-continent, I said we were seeking to improve relations with India in order to balance Soviet influence. We strongly stand behind Pakistan independence and we hope to give them our assistance when Bhutto visits you early next year. Iran is broadening its role in the region along the lines that the Chinese and we find useful.
"-- I introduced the new themes of energy and food, suggesting that it is not in the longer term Chinese interest to take us on blindly with respect to these issues. The weakening of the West due to the oil crisis would not be to the Chinese advantage. The US could fare well on its own but we would act firmly for the sake of our friends.
"-- Finally, I said that we would be willing to discuss Cambodia if they wish to. We are prepared to see a role for Sihanouk as a result of negotiations, but we could not simply abandon our friends for this would have ramifications beyond Cambodia. The Chinese seemed interested in pursuing this question, though they confined themselves to their standard line in this opening session.
"-- I deliberately skipped Korea, since they are the damandeur on this issue and we apparently have the voting edge in the UN.
"The afternoon session was devoted to the issue of Taiwan and diplomatic relations with the PRC. I purposely talked about principles and the problems we face rather than getting into specific formulations. I said that we are prepared to talk concretely but if we could not reach understandings, we are content to keep essentially on our present course of gradual withdrawal.SECRET/SENSITIVE
