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appeared. There will inevitably be a political price to

pay.

8.

We

The timing proposed is particularly unfortunate. have just negotiated with the Argentines, ad referendum

to Ministers, some major changes in the Interim

Reciprocal Information and Consultation System (IRICS).

Already the Argentine press, on the basis of leaks, is

portraying the changes as beneficial to Argentina.

Whilst we can show that these changes have actually

enhanced security on the Islands they will need to be

carefully presented to the Islanders. It will be that

much more difficult to do if the withdrawal of ENDURANCE

is already public. Furthermore, the Antarctic Conference is now underway in Madrid. There are those here who

advocate that the Secretariat to oversee the

implementation of the Environmental Protocol should be

located in the UK. To announce the withdrawal of

ENDURANCE now would certainly be regarded as an

indication of HMG's diminished interest in Antarctica and

undermine the case we might wish to deploy regarding the

Secretariat.

9.

In his minute to me of 13 June the Private Secretary said that the Secretary of State believed that we needed to take stock of our other overseas interests which might

affect Options for Change. These interests have also been

described in the draft minute.

M S BAKER-BATES

CONFIDENTIAL

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