CONFIDENTIAL

field the Prime Minister will wish to reassure President

Reagan that the UK fully shares American concern about

the 'technology haemorrhage' to the Soviet bloc, and that

we have taken action to tighten up our own procedures as

well as our support for action in COCOM.

10.

Defence issues will be particularly important and

topical. The President will wish to discuss the tactics

for maintaining the cohesion of the Alliance during the

run-in to INF deployment and the public handling of the

sensitive issues involved. The Prime Minister will have

an opportunity to give advice on this and to reaffirm

Britain's support for NATO's dual-track decision. At the

same time she would have a chance to remind the President

of the need for his Administration to be seen to be

genuine in its desire to reach arms control agreements,

and she might in this context urge the President to put

some new impetus into the START talks. She might also

raise the Western response to the latest

proposals on outer space.

Soviet

Central & Latin America & Falkland Islands

11.

Subject to the decision to be taken by OD on 22

September, the Prime Minister will wish to reassure the

President that the British garrison will not be withdrawn.

from Belize at the end of the year. She will wish to

point out, however, that we cannot sustain this

commitment indefinitely and that we look to the Americans

to help bolster the security of Belize in the longer term

and to bring pressure to bear on the Guatemalans to reach

a settlement.

CONFIDENTIAL

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