id. The Prime Minister has asked for further views from the

Secretary of State on this question. No 10 have indicated

that Mrs Thatcher would prefer not to deal with the matter

by an OD paper at present. The attached draft is therefore

self-contained, expanding on the key point of sovereignty

and suggesting a duscussion between the Prime Minister,

the Secretary of State and the Lord Privy Seal.

There may

in addition be a further meeting to be attended by Sir

Murray MacLehose, Sir Percy Cradock and Sir Edward Youde.

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