CONFIDENTIAL

together to strengthen both the Community and the

Alliance.

7. More specific objectives are likely to be as

DSR 11C

follows:

Community

Ne can

8. Mitterrand's main objective in the autumn negotiation

is to preserve French advantages from the CAP. This will

bring them into direct conflict with our proposal for a

strict financial guideline which they reject. The French

will not necessarily oppose some form of safety net

system, but their position has recently hardened.

adopt and exploit a forthcoming attitude to French

ideas on R & D and industial policy, making the most of

the approach in our other Policies paper to demonstrate

that we do have clear ideas about the future of the

Community. (See separate Community General Brief.) We

can also point to the Europeaness of the UK's decision to

collaborate with France, the FRG, Italy and the Benelux

countries on fast breeder reactors.

East-West Relations, Defence and Arms Control

9.

Both sides will wish to review East-West relations

in the wake of the Korean airliner tradedy. The French

reaction was half-hearted, but both France and the UK are

in no doubt about the need to continue arms control

negotiations.

M.

Mitterrand made it clear in his

Bastille Day speech that he would not waver in his

support for full deployment of the missiles should

lack of progress in the Geneva talks make this necessary;

CONFIDENTIAL

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