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prospects for progress.
Hong Kong
15.
The Americans are very concerned about the future
of Hong Kong where they have extensive interests. A
They are kept in the pictive at a high
brief on the subject is being given very limited
at the
distribution.
level, mainly State Dept,
World Economic Scene
16. The Prime Minister may wish to emphasise the
requirement for sustained economic recovery, grounded in
new investment. US interest rate levels are the major
determinant of levels elsewhere. The mix of US
economic policies seems likely to have come under attack
at the IMF meetings taking place immediately before the
Prime Minister's arrival in Washington, as may the
problems created by Congressional intransigence over
legislation to authorise increases in IMF resources.
Action by the Americans to implement the Williamsburg
Declaration is even more important than action by other
countries. In the context of the Williamsburg commitment
to roll back protectionism, the Prime Minister will wish
to emphasize the need to prevent any further
deterioration in relations between the United States and
the European Community. Mrs Thatcher could remind the
President that his recent measures affecting steel
imports were unhelpful and indicate the need for an
effort on both sides to resolve current problems over
agriculture.
17. The President will be interested in British plans
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