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issue.

We continue to believe that a United Nations-sponsored

international conference based on UN Security Council resolutions 242 and 338 offers the best prospect for a peace settlement.

The recent meeting of the Palestine National Council (PNC) in Algiers gives some grounds for hope. For the first time the PNC seem willing to accept an international conference on the basis of resolutions 242 and 338. On the other hand, while the PNC has shown some movement on renouncing violence and recognising Israel's right to exist, explicit commitments are still lacking.

We know that decades of enmity are not easily erased. But the Palestinians must show in deeds as well as words that they are genuinely seeking peace. On her side Israel must be prepared to put Palestinian good faith to the test through a similar commitment to negotiations. Many Israelis accept that the status quo cannot be sustained and that a new approach is urgently needed.

My Lords, the United Nations has also offered a blueprint for a solution to the problem of Namibia. Independence for Namibia is nearer now than at any time since the Security Council adopted Resolution 435 in 1978. The recent ad referendum agreement in Geneva on a timetable for Cuban troop withdrawal from Angola represents a remarkable success for American diplomacy. It is a personal triumph for the skill and persistence of Dr Chester Crocker. We have given our full support to the the US-led negotiations. I am also glad to reaffirm our readiness to contribute to the United Nations Transitional Assistance Group in

Namibia.

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The American achievement is also a vindication of our own policy towards Southern Africa. It demonstrates that engagement achieves more than walking away from the problem.

With South Africa, for example, we have pursued a policy which combines dialogue with diplomatic pressure. It cannot be said too often, My Lords, that patient and persistent diplomacy is more

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