DSR 11C

4. The Government has played a positive role in

strengthening the internal and external policies of

the European Community. Notable achievements in 1984

were the settlement at Fontainebleau of the problem

of Britain's budget contribution, producing refunds

for Britain totalling [ECD (I) to provide figures

please]; agreements on the control of Community

expenditure, particularly upon agriculture; progress

in negotiations to enable Spain and Portugal to join

the Community on terms acceptable to the United Kingdom;

and firmly focussing the Community's attention on

building a real Common Market in Europe.

5. Substantial progress has been made on two of the

three disputes affecting Britain's remaining dependent

territories. The successful negotiation with the

Chinese Government of an agreement on the future of

on excellent fangnark Hong Kong has provided (the necessary guarantees for the

future prosperity and stability of the territory. This

has been welcomed by the international Community as a

major achievement for British diplomacy. Spain has

lifted its restrictions on Gibraltar and negotiations

have commenced on all the differences between the two

governments on Gibraltar. The Government has made clear

its commitment to honour the wishes of the people of

Gibraltar. We have continued to honour our responsibilities

to the other dependent territories, including in

particular to the people of the Falkland Islands.

/6.

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