CONFIDENTIAL

to regard Australian and British interests in this matter as

identical, would like to hold these talks very soon, even in

advance of an Australian approach to third countries. FCO officials

take the view that there is no risk of losing negotiating leverage

to secure any improvements we want in the scheme, since our agree-

ment to the scheme remains essential; and that our difficulty will

rather be to persuade the Australians that we mean business when

we ask that they should talk to other countries affected before

carrying the scheme further. Agreement to immediate talks would

lead the Australians to hope that they could talk us out of our

insistence on this point. Moreover a further round now would give the impression to third countries that HMG had agreed to the scheme in principle, and were not too concerned about third country reac-

tions. The Australians have already gone further than was agreed

at the last round of talks by indicating in an Aide Memoire-for

circulation to all ASEAN member countries (and which has already

which

leaked to the that they wished to talk to them

practicable" after the completion of negotiations with the British".

thepress

=

as soon as

19 July 1978

сс

PS/Lord Goronwy-

Roberts

Mr Cortazzi

Mr Murray

SEAD

SWPD

HK&GD

SAD

MED

WED

NAD

MR Morland

Maritime, Aviation and Environment

Department

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