CONFIDENTIAL

6. To continue closely to monitor US/Soviet relations,

particularly in the context of the Geneva arms reductions

talks, and the November Reagan/Gorbachev Summit.

7.

To continue to seek to persuade the Administration to

adopt a more active and constructive role in the Middle East.

8.

To maintain continuous analysis of prospects for the 1986

mid-term Congressional elections; to monitor the Democratic

party's search for a new identity, following its eclipse in the

Mondale/Reagan election; and to try to ensure that likely

Republican and Democrat runners for 1988 are actively cultivated

and influenced.

9.

To monitor US policies towards China, Japan, Korea and

particularly the Phillipines; while seeking to ensure that the

Administration, Congress and the business/financial community

remain optimistic about Hong Kong's future.

10. To influence the development of US Southern Africa

policies in what is likely to be the "post-constructive-

engagement" phase and to ensure that UK and US policies do not

diverge in such a way as to leave us exposed.

11.

To improve our liaison with US narcotics control

agencies particularly in respect of trafficking from the

Caribbean and Central America into the US and the UK.

12.

To maintain US understanding of UK Falklands Islands

policy; to encourage the Administration to push Argentina

towards normalisation and a sensible dialogue with the UK;

and to work to prevent US arms sales to Argentina.

CONFIDENTIAL

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