ANGLO-GERMAN SUMMIT: 28/29 OCTOBER

LIKELY GERMAN OBJECTIVES

DSR 11C

ANNEX C

1. To impress on British Ministers that a CDU/FDP

effectively

Government intends to work even more lesely with HMG

than its SPD/FDP predecessor.

2.

To explain that the broad outline of German foreign

policy will remain unchanged, but that more emphasis

will be placed on the need to maintain good transatlantic

relations and take a harder and more realistic view of

and t

relations with the Soviet Union.

3. Given the desire to minimise strains with Washington,

to reach the widest possible agreement with us on:

(a)

(b)

(c)

(d)

East/West issues including Poland, the gas pipeline,

East/West trade and credits, arms control and CSCE;

other transatlantic economic issues especially steel;

wider international economic issues, such as

protectionism, inflation, unemployment: in this context they will be interested in the Prime Minister's view

on Japanese policy and prospects;

other international political issues notably

Falklands, and British intentions about negotiations,

Middle East, Southern Africa.

(On the eve of the German Presidency of the EC,

explore

4. to further the prospects for an early transitional

settlement of the Community budget dispute pending

enlargement, to concept strategy on enlargement and to seek UK support for German interests on other EC issues,

notably EC/Turkey.

/5.

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