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difficult by such incidents as the Argentine attack on the Taiwanese fishing vessel. Argentina had still not declared a cessation of hostilities. M. Bariani repeated that it would be useful to reduce our difference of appreciation over the sensitive list and existing contracts. The French fully understood the importance of the issue for the UK.
6. M. Bariani asked about prospects for reaching an agreement with Argentina. Lady Young said that prediction was very difficult. We had many times tried to improve our relations with Argentina eg by lifting the trade embargo. Argentina had now responded, albeit informally, to this initiative. She confirmed that we could not negotiate on sovereignty.
South Pacific
7. M. Barianı said that the South Pacific was an area of great sensitivity for France. The new government's policy had been clearly expressed in texts on New Caledonia and the South Pacific, which had been presented to the Council of Ministers.
To stop nuclear testing in the Pacific would cause serious problems for France's defence. He hoped for British understanding of this vital point. Lady Young assured him that we did understand French sensitivities. That was why we were considering so carefully the protocols of the Treaty of Raraotonga. M. Bariani said that the Australians kept trying to influence French policy on New Caledonia. A referendum would be held within a year in New Caledonia and was likely to support remaining a French territory. The referendum would decide the position for a long time. He had told the Australian Minister of Immigration that French policy would be decided exclusively by France. Lady Young said that the subject had not come up during her visit to Australia in April. If it had she would have said that New Caledonia was a matter for France. M. Bariani said he would be grateful if HMG would discourage the Australians from trying to interfere.
Turkey
8. M. Bariani said that the new French government sought to improve relations with Turkey. The French Minister of Defence had been well received in Ankara, and he himself would chair the bilateral mixed commission on 9 April in Paris. Cyprus had not been mentioned during M. Giraud's visit. Lady Young said that our own relations were good. Turkey had made progress towards democracy which should be recognised in Europe. It was not taking its rightful place
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