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reasons relating to the Israeli presence in South Lebanon,

it

has not so far been possible to take up. The recent unilateral

Israeli decision to withdraw from Lebanon in three stages

ending this summer may however clear they way for a visit later

this year.

5. As in the past, the Middle East remains a major market for

British defence equipment, with a number of major prospects

currently delicately poised. These may require visits by the

Secretary of State to Saudi Arabia and Jordan though dates for

these cannot yet be set. For similar reasons, an inward visit

by the Jordanian C in C may be appropriate during the course

of the year, and it is also to be hoepd that the Saudi Arabian

Defence Minister, Prince Sultan, can be persuaded to visit the

UK in view of his country's crucial political position in the

Gulf, their importance as a buyer of defence equipment and their

influence on the procurement policy of a number of other members

of thei Gulf Co-operation Council. There are also outstanding

invitations to the Qatari Crown Prince and the UAE Minister of

Defence to visit the UK.

SE Asia/Far East/Australia

6. The recent postponement by the Indian Government of the

Secretary of State's planned visit to the country in February,

due in part at least to their dissatisfaction with HMG's

handling of Sikh activity in the country, places an even greater

importance on re-establishing our relations with the New Indian

Government. It now looks possible that this visit can be

reinstated for the latter half of April, provided that there are

no unexpected repercussions from the current "spy scandal".

Should the visit fall through, one by Minister (DP), to balance

his expected visit to Pakistan in connection with the Type 21

C 3

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CONFIDENTIAL

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