CONFIDENTIAL
6. The main areas for discussion will closely resemble
those for the Anglo-French Summit (20-21 October) and are
likely to be:
i) the European Community
in particular the prospects for the Athens European
Council on 6 December. As the two net
contributors,
Britain and Germany share the broad aims of reining
in wasteful Community expenditure and the Germans
have much sympathy with our ideas as to how this
might be done, including the safety net. The Prime
Minister's discussions with Kohl on 21 September
revealed an encouraging. measure of agreement. The
major difference between us in Community matters is
in the question of a legally binding financial
framework for expenditure on the CAP. The Germans,
for whom the maintenance of a suitable and prosperous
rural population, essentially of family farms is a
very important policy goal, are in the end unlikely
to accept the financial discipline we see as
essential if spending on the CAP is to be brought
under control. The Summit will provide a further
opportunity for the Prime Minister to make our
concerns clear and to persuade Kohl that we should
work closely together in the run-up to Athens.
ii)
East/West relations, Defence and Arms Control
The Germans are as always anxious to maintain the
continuity of the East/West dialogue. I have already
outlined the importance of INF. The combination of
CONFDIENTIAL
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