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in March to Exercise COLD WINTER should, therefore, be ample for

1985.

7. The FCO have proposed that the Secretary of State should

visit Canada and host a visit by his Portuguese opposite number.

Whilst acknowledging that the case for the former has some merit

is it considered to be of lower priority than other competing

claimants, not least because the UK has had a quite recent

opportunity to influence the new Canadian Government's defence

programme when Mr Coates, the incoming Defence Minister, visited

the UK last October. Minister (DP).is expected to visit Canada

in the early Spring and Minister (AF) plans to make another visit

to Suffield; these should be sufficient for 1985. The FCO

place a lower priority on a visit from Portugal and, since it

seems almost certain that the Portuguese would use the oppor-

tunity to seek further aid for their frigate programe, we have

on balance concluded that a visit in the coming year would be

inopportune.

Other European Countries

8. Among non-NATO European countries, plans are already in

hand for the Austrian Defence Minister, Dr Frischenschlager to

visit the UK in April 1985. Close relations with Sweden are

considered of importance by both the FCO and ourselves, in view

of her strategically important position on the northern flank,

the intricacies of the Nordic balance and her importance as a

market for the UK; following the Secretary of State's visit to

Sweden early in 1984, a return visit by the Swedish Defence

Minister would be appropriate in the normal course and we

therefore propose that Mr Thunborg be invited to visit the UK

during the latter half of this year (though timing will need to

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