CONFIDENTIAL
on the main issues of the day.
7. Mr Reagan will no doubt see the Prime Minister's
visit as an opportunity to underline the closeness of the
bilateral relationship as well as his own high regard for
the Prime Minister. Although he will expect the Prime
Minister to raise privately a number of concerns,
including the US budget deficit and its effect on
interest rates, he will hope that in public the visit
will illustrate the closeness of view between the two
governments on economic strategy and reaffirm that
recovery is underway. He will also be looking for
support for his approach to relations with the Soviet
Union, especially in the light of the KAL incident, and
for the Administration's policies in Central America and
probably also in Lebanon.
HANDLING OF MEETING WITH THE PRESIDENT
8. In order to make the most of the limited time
available for the Prime Minister's meeting with the
President, the President and the Prime Minister might try
to reach broad political agreement on the following key
topics.
X
x
9.
The Sover
East/West Relations Including Defence/Disarmament Issues
The Korean airine tragedy has highlighted a number of
to the world aspects of the Soviet system and attitude of issues which
would lead naturally into a discussion of Western policy towards the Soviet Union. The Prime Minister will wish could
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to lead into the discussion of East/West relations from
this perspective.
On specific points in the economic
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