CABINET OFFICE

70 Whitehall. London sw1A 2A5 Telephone 01 233 8319

From the Secretary of the Cabinet: Sir Robert Armstrong KCB Cvo

Ref: A05709

My

dear Michael,

15th October, 1981

Commonwealth Heads of Government Meeting

.I

The sense of dissatisfaction which we all felt about the proceedings in Melbourne was not, as I discovered, confined to the British delegation. doubt whether the Prime Minister and the Foreign and Commonwealth Secretary would want to endure another meeting like that; and their discontent was shared by some colleagues from other countries.

During the journey back from Melbourne, I told the Foreign and Commonwealth Secretary that you and I had in mind to set in motion a review of CHGMs with a view to seeing if we could devise ways of making the meetings shorter, more business-like and more productive. He welcomed that, but indicated that our review should be even more fundamental, and that it should consider the balance of arguments for and against our continuing membership of the Commonwealth.

There are a number of reasons why it would be difficult for us to come out of the Commonwealth voluntarily; but that does not mean that it would be inappropriate to take stock of the political and economic benefits and dis- advantages of membership, and to try to strike a balance.

I think if we were going to make any progress in changing the format of CHGMs we should need to have worked out our ideas, and probably to have at least some bilateral discussion with some members of the Commonwealth, before the next meeting of senior officials which will presumably be in about a year's time. I do not think that it is too early to start the sort of review that would be involved, while the experiences of Melbourne are still in our minds.

I suggest that, when you are back, you and I should have a first word about all this, and about how we might carry the matter forward. But at an early stage we ought to bring in the Treasury as well, because I know that Douglas Wass is feeling the same sense of dissatisfaction about meetings of Commonwealth Finance Ministers, and many of the same considerations must arise in that area.

Yours over

Sir Michael Palliser GCMG

Robert

K

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