MKK 243.12

RECEIVED REGISTRY

0 1 OCT 1985

DESK OFFICER

REGISTRY

CONFIDENTIAL

ра

PA (Sam) E keeles

243

RECORD OF TALKS BETWEEN THE PUS AND MR EDOUARD BRUNNER,

GENERAL OF THE SWISS FOREIGN MINISTRY, 24 SEPTEMBER 1985

Sir Antony Acland

Mr JR Rich, HM Ambassador

Berne

Mr DJ M Dain, WED

Mr S Cowper-Coles, PS/PUS

Mr T V Fean. WED

Mr Edouard Brunner

SECRETARY

M Francois-Charles Pictet,

Ambassador of Switzerland

Mr Willy Hold, Minister, Embassy

of Switzerland

Mr Loretan, Adviser to Mr Brunner

1. After a 15 minute tête à tête between the PUS and Mr Brunner,

delegations joined the meeting.

UK/Swiss Bilateral Relations

2. Mr Brunner took up the PUS's remarks about the prospects for

Land Rover sales to the Swiss Armed Forces and welcomed the news

that 30 Swiss Pilatus PC9 aircraft were to be included in the

Tornado deal with Saudi Arabia. As the PUS had said, this augured

well for further UK/Swiss collaborative ventures. The Swiss Defence

Minister, Mr Delamuraz, looked forward to visiting the UK in 1986. The problem with the Land Rover deal was partly caused by the Swiss Parliament. Mr Brunner's department and the Military department

both favoured BL's bid. Mr Rich mentioned that the new Swiss laws

on vehicle emissions were also posing problems for BL: the Swiss Government wanted prototype vehicles by mid-1986, but BL had difficulty in modifying the prototype to meet Swiss exhaust control legislation.

UK/Swiss Civil Aviation Negotiations

3. Mr

Brunner mentioned that the two Governments did not yet agree

on fare structures. Mr Rich said that there was an additional

problem of traffic rights to Hong Kong. were complex, would resume in November. agreement could be reached quickly.

The negotiations, which

Mr Brunner hoped that

Bilateral Trade

4. Mr Pictet said that if trade in gold and diamonds was excluded from the figures, UK/Swiss trade was virtually in balance. Mr Rich

confirmed that the UK market share had improved. Mr Pictet said

CONFIDENTIAL

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