MU.C OIL

196

CONFIDENTIAL

RECR

1. KOT 1093

FROM:

PS/Mr Goodlad

PESTRY in Taken!

DATE:

10 November 1993

CC:

Mr Masefield

Mr Hum

Mr Fry, FED

Mr Ricketts, HKD

Mr Hewitt, SEAD

Mr Guest, SPD

Mr Kydd, News Dept

Mr Larner, News Dept Mr Fraser, Special

Advisers

Mr Maclay, Special

Advisers

Sir J Coles

FORWARD PLANNING MEETING ON ASIAN ISSUES: 8 NOVEMBER 1993

1. Mr Goodlad was grateful to you for the agenda for this meeting and to all those who attended.

AUSTRALIA

2.

Mr Guest said that the UK legal position on the Nauru/Australian settlement was unchanged by the discovery of a subsequent side-letter between the two parties. He would submit soon on further possible compensation claims by other former colonies and Dependent Territories. New Zealand was likely to contribute £3.5m to Australia. Our position might still be unclear when Mr Bilney visited the UK in December. You commented that there was no need to hurry. But a contribution would be easier if the Treasury had

'ring-fenced' money for Nauru. Mr Guest said they had set aside £7.7m 6 years ago. Mr Masefield observed that we reminded the Treasury of this annually and had been allowed to use the interest on this sum. Mr Guest briefed on the Australian constitutional debate. Mr Keating was now keen to separate constitutional from other bilateral issues and had been advised to step back from the issue. HM The Queen's CHOGM speech had helped take steam from the debate. Key questions on the future agenda would be (a) who would open the 2000 Olympics (the rules specified the Head of State); and (b) what would happen if some states opted to stay within the Monarchy while others chose a Republican future. You mentioned that the Prince of Wales was due to visit Australia in January/February 1994.

CONFIDENTIAL

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