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Remarkable progress recently, the latest development being the repeal of the Population Registration Act on 17 June [satisfying the fourth of the five US conditions for lifting sanctions];
Vital that economic sanctions go soon. Pressing need to help the South African economy return to growth to underpin the reform process. For this reason, the European Community lifted its new investment ban in December 1990;
Encouraged by President Bush's suggestion that he would lift sanctions against South Africa by mid July. Hope you will support him.
- On sporting contacts [The European Council in
Luxembourg adopted a declaration allowing for renewed international contacts with racially integrated sports in South Africa, something which the ANC itself supports]. [We are pressing our EC partners to recognise the principle of renewed international contacts with racially integrated sports in South Africa, something which the ANC itself supports].
SOVIET UNION US CREDITS
The US announced on 11 June that it would meet the Soviet request for up to $1.5 billion in credit guarantees towards the purchase of American agricultural products over the next 9 months. They have also offered to provide a high level team of Government and private experts to help improve the Soviet food distribution system. The question of MFN status for the Soviet Union is still under consideration. The Prime Minister could say:
We support efforts to improve the Soviet Union's agricultural system: our own know-how fund and the EC's ECU 400 million are focusing on this. The EC are also providing ECU 500 million of credit guarantees for food purchases;
- We consider the best way to help the Soviet Union with economic reform is through provision of Western advice and expertise; through technical assistance in key sectors of the economy. We are also looking at ways of bringing the Soviet Union into a closer relationship with the IFI's, particularly the IMF.
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