ONFIDENT

CONFIDENTIAL

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It was

real difficulties in providing this service if the ambulance staff dispute escalated and the police and voluntary services had to provide a substitute service on a regular basis. necessary therefore to have in reserve arrangements for using the armed forces but no alternative agency had either the equipment or the training needed to provide the full range of ambulance services. Nevertheless the Secretary of State for Health, together with other interested Ministers, must ensure that adequate contingency plans were made. It was crucial, if inflationary pay rises in the NHS generally were to be avoided,

at the Management Side were given full support. Most Importantly, the Unions should not be allowed to get into a position where they could provide a skeleton ambulance service and ensure that their members were not suffering unacceptable losses in pay, with the result that the NHS management and the Government were gradually manoeuvred into a weak position.

The Cabinet

Took nota

approval, of the Prime Minister's summing up their discussion, and invited the Secretary of State forth to proceed accordingly.

of this part

FID

FOREIGN AFFAIRS

Argentina

Previous Reference:

C(89) 28.3

3. THE FOREIGN AND CONTONE LIH SECRETARY said that there had been a positive domestic and international reaction to the outcome of the talks between the United Kingdom and Argentina which took place in Madrid from 17 to 19 October.

Britain had taken steps of due in the national interest towards a normal relationship with Argentina but had conceded nothing on sovereignty over the kland Islands. New openings for British business in Argenting had been created since the Argentine Government had undertaken to lift all restrictions and restrictive practices. There had been no diminution in the security of the Falkland Islands. He had sent a personal message to the Islanders when the talks concluded. The Governor of the Falkland Islands had reported that the Islanders were content with the outcome. The next set talks would take place in Madrid on 14/15 February 1990. The agenda would include a discussion on diplomatic relations the present time agreement had been limited to a resumption of consular relations. All in all, the outcome of the talks been a distinct success.

In a brief discussion, it was noted that the United States Defense Secretary, Mr Dick Cheney, had told the Secretary of State for Defence that the United States Government was interested in the result of the talks and hoped that Brita relations with Argentina would continue to improve. The

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