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ITEM 2: INTERNATIONAL CONSULTATION

The draft OPD paper (MISC 16 (74) 17) has been extensively discussed in the Sub-Committee and takes full account of Foreign and Commonwealth Office views. We would not wish to propose any amendments. however, wish to bear the following points in mind:

i)

COVERING PAPER

The PUS may,

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The Treasury representatives may draw attention to the passage which refers to Anglo/German Offset and promises a paper for Ministers. They may also refer to Mr Nairne's letter of 5 August in which he asked the FCO to take the lead in preparing a short paper which would also consider the link between renegotiation and the Defence Review. A good deal of work has been done but we have not yet reached agreement within the Office on how best to present the issues to Ministers. If pressed the PUS might say that we hope to circulate a paper soon.

ii) ANNEX A (Recommendations on the form and timing of

consultations)

This is a Cabinet Office draft based on work done in

the FCO and the MOD. There has been much discussion about the timetable (paragraph 7) and in particular about the timing of a possible Parliamentary state- ment. The paragraph dealing with this question (paragraph 6) represents a compromise between those who felt that Ministers would wish (or would find it necessary) to make a statement shortly after the Cabinet had taken a decision, and those (the FCO and the MOD) who argued that it would be best to delay making any statement until our proposals had been formally presented to NATO. The timing now proposed should be tolerable; the PUS will wish to resist

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