CONFIDENTIAL

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HKK040/15-

· 1985

RESUME OF DEVELOPMENTS FOR THE SECRETARY OF STATE

WEST-WEST AND EAST-WEST

1.

US Presidential Elections

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President Reagan was duly nominated at the Republican Convention in Dallas on 23 August. A striking feature was the adoption of a Republican Party platform with a strongly conservative slant. The right seem to have had their way on domestic economic and social policy as well as on foreign affairs. present assessment is, however, that President Reagan will not feel bound by the platform and where the party line is not consistent with his policies, he will run on the latter.

2. Canadian Elections

The Canadian General Election is being held on 4 September. The Progressive Conservative Party under Mr Brian Mulroney is ahead in the opinion polls by a 14% margin. The Liberal leader, Mr Turner, is currently running third in the Vancouver constituency he is contesting.

3. Outer Space Arms Control and Strategic Defence

There has been no apparent change in the Soviet position on the Vienna talks since TASS on 27 July accused the US of making them 'impossible'. The US is now openly pessimistic but both sides are taking care not to incur blame for closing the door on talks. In Washington inter-agency policy differences remain, with the National Security Council unlikely to choose among the options presented until at least mid-September.

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On 5 August, Mr Shultz sent a message to the Secretary of State urging us to press the Russians to be more forthcoming. Lady Young replied on the Secretary of State's behalf on 15 August, and the same day, Mr Luce issued a statement which called upon the Soviet Union to demonstrate the necessary flexibility to allow the talks to take place.

A report by officials on Ballistic Missile Defence and the US Strategic Defence Initiative was submitted to the Secretary of State on 24 August.

CONFIDENTIAL

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