industry and to subsidise sales of dairy products to

Egypt. She could also stress the need to maintain

pressure on the Japanese to reduce their trade surplus.

4. On defence, (Brief No. ) the Prime Minister will want

to reiterate her position on INF and underline the

importance of a united NATO approach to the negotiations.

Dutch objectives on this (see below) are different from

our own. While making clear our concern at recent

developments in the Netherlands on INF, the Prime

Minister may find Dr Lubbers very sensitive to criticism.

The topic might best be raised first in the more intimate

context of lunch.

5. In the light of recent developments the Prime Minister

may also wish to say something on East West relations

(Brief No. ).

DUTCH OBJECTIVES

6. Dr Lubbers has said he would wish to concentrate on

Community questions and security and defence po9licy in

particular INF. He is also anxious to develop a closer

personal relationship with the Prime Minister, hence his

desire for lunch alone with just the Foreign Minister in

attendance.

7. The Dutch face a politically difficult decision next

year on stationing INF, and are looking for any possible

progress in Geneva that would obviate the need for

deployment in the Netherlands.

The Brief (No. ) also

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