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CONFIDENTIAL

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17 July 1991

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PRIME MINISTER'S DINNER FOR G7 HEADS OF GOVERNMENT AND

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The Prime Minister gave a working dinner this evening forthed the G7 Heads of Government and President Gorbachev.

PRESIDENT GORBACHEV

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The protocol order for arrivals went slightly to pot this evening, and President Mitterrand was one of the first Heads of News Government to arrive. Quite how, while taking drinks upstairs, Plauen he came to sing "Au près de ma blonde" to an admiring audience of Mr. Kaifu and, slightly less admiring, Guilio Andreotti I cannot say.

Brian Mulroney hummed a bar or two as well. marketing possibilities must be considerable.

Tony Bishop was present as interpreter at the dinner itself, and what follows is based on his account to me afterwards.

The first two courses of dinner were jovial and

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lighthearted, and the Heads of Government were rather reluctant

to be called to order by the Prime Minister. Tony described the mood as jolly and friendly, with Gorbachev in particular very relaxed and cheerful.

Middle East

This was the first subject discussed, and Gorbachev led off, saying that he could see some movement and positive signs particularly if we all acted together. The Soviet Union was working on Arafat, and hoped to produce more give in his position.

President Bush speculated on whether Arafat would be a spoiler in the whole affair, e.g., on the issue of a joint Jordanian/Palestinian Delegation. President Mitterrand commented that no Palestinian would be found willing to negotiate without Arafat's blessing. So Arafat needed to be brought on side. Andreotti spoke in similar terms. Gorbachev hoped that there could be a joint Jordanian/Palestinian Delegation, and Mitterrand agreed. What would happen, Mitterrand wondered, if Arafat said no to an Israeli Delegation headed by Shamir. That could be awkward. Gorbachev wondered if there could be a package with the Palestinians accepting a Jordanian/ Palestinian joint Delegation provided the Israelis would agree to participate in talks. Gorbachev added that the Soviet Union were expanding their dialogue with the Israelis. President Bush said how helpful the Soviet Union had been, particularly with the Syrians.

CONFIDENTIAL

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