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focus for attention because of its global significance and also Hong Kong. In the Middle East our main priorities are to encourage the peace process and to maintain pressure on Iraq to observe UN Resolutions; Saudi Arabia has a special importance as a major market and because of its influence in the region. Our key concern in Africa is to see continued progress towards stability and prosperity in South Africa on a multi-racial basis; we shall also maintain pressure for a return to civilian democratic rule in Nigeria. As for the Americas, the relationship with the USA would remain our key bilateral relationship; the Caribbean is a source of concern, subject to threats from drug-trafficking, money-laundering, other financial crimes and resultant political instability. Latin America had assumed a new importance due to the successful programme of political and economic reform in many countries, notably Argentina with whom together with Brazil and Mexico - we want stronger relations. On global issues our concerns include UN matters, arms control, nuclear non-proliferation, drug-trafficking, Aids and the environment.
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Ambassador Petrella asked whether the BBC would retain global coverage. Sir John Coles commented that while priorities might change, he could not see the BBC wihdrawing from any region. To a question about US relations with Europe in the light of Mr Christopher's recent speech, Sir John doubted whether there would be any swing away from Europe towards Asia. The US had had much to say about Asia recently but with the Russian elections, the concern about Bosnia and the forthcoming NATO Summit he expected US interest in Europe to be reconfirmed.
The Americas: Prospects for regional security cooperation and economic integration
5. Ambassador Petrella said Argentina wanted to interest countries in the region in a new concept of security. Democracy had brought a new set of problems. There was scope for more extensive military exchanges. He promises to send a copy of a paper. Argentina had settled the bulk of its border disputes with Chile; there was a new openness and trust;, trade had tripled; joint projects were in hand;
it was inconceivable that the democratic process would be reversed. Some difficulties remained with Paraguay and Uruguay over shared river resources but these were being addressed. Brazil was more of a worry; there was a new nationalism abroad there and despite some bilateral success over proliferation, there were still difficulties.
6. President Clinton had mentioned to President Menem the possibility of eventual Argentine accession to NAFTA, but Argentina was in no hurry and was concentrating on Mercosur for now. Argentina would need to see how it coped with competition from Brazil in Mercosur before taking on the North Americans.
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