COMPITNITTAL

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My Government have continued to work for the achievement of

balanced and verifiable arms control agreements.

They have

played a full part in the Vienna negotiations on reducing

conventional forces in Europe and in the talks in Geneva on the

abolition of chemical weapons. They have continued to cooperate

with the United States over the removal of cruise missiles from

the United Kingdom under the terms of the Treaty between the

United States and the Soviet Union on Intermediate Range Nuclear

Forces.

My Government have continued to play a full and active role in

progress towards the completion of the European Community's

Single Market, and have encouraged business to prepare for the

opportunities and challenges that this presents. They have, with

our European Community partners, reaffirmed their commitment to the progressive realisation of economic and monetary union, and

agreed that its first stage should begin on 1 July 1990. They

have, with our European Community partners, established a Court

of First Instance attached to the European Court of Justice.

They have continued to play a full part in multilateral

negotiations designed to liberalise international trade.

My Government have welcomed the completion of the Soviet troop

withdrawal from Afghanistan, and have continued to work for the

restoration of that country's independence and non-aligned

status. They have contributed to the implementation of the

United Nations Plan for Namibian independence.

[My Government have supported, and welcome, the return of

Pakistan to the Commonwealth.]

My Government have maintained a substantial overseas aid

programme to developing countries, including emergency assistance

to alleviate the effects of natural disasters in many parts of

the world.

SB3ABF

CONFIDENTIAL

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