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that serious tensions continue in the region [and last

Sunday's elections in Nicaragua have not helped]. The

Contadora process has been beneficial, and we hope that

final agreement can be reached. The San José meeting

in September, attended by Foreign Ministers of the Ten,

showed practical European support for a peaceful

settlement.

We have underlined the importance of

promoting democracy and human rights. Community aid

will increase and regional projects are planned.

Britain is also active in the region on her own

account. We have the Belize garrison and have

re-opened resident missions in Managua and San

Salvador. I have visited Mexico, Belize, Panama and

Costa Rica and President Monge and President Duarte

have visited Britain. We plan to increase our

bilateral aid substantially next year. This is in

addition to our existing commitments in the Caribbean,

where we are actively supporting regional cooperation

and maintain bilateral assistance worth between £25m

and £30m per year: I have first hand experience after

two visits since taking office, and I shall again be in

Trinidad and Barbados next week.

7. I turn now to the political aspects of defence. It

cannot be said too often that NATO is the foundation of

our security. The Alliance is as solid today as at any

time in its 35 year history. Its cohesion was again

demonstrated by the successful initial deployments of

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