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attention could be concentrated on explaining the benefits to patients of the new contract. The resolution of the contract issue also removed a difficulty in the way of discussion of the Government's wider NHS reforms.
The Cabinet
Took note.
CONFIDENT
OREIGN FFAIRS
nited States/ oviet Summit eeting
3.
FOREI
THE FOREIGN AND COMMONWEALTH SECRETARY said that the United States President, Mr George Bush, and the Soviet President, Mr Mikhail Gorbachev, would meet aboard United States and Soviet vessels in the Mediterranean on 2/3 December. This would be an interim, informal meeting as a precursor to the full-scale United States/Soviet Summit scheduled to take place in June 1990. It was not expected to be the occasion for detailed negotiations. The Prime Minister's own visit to the United States eight days before would be well timed to enable her to brief President Bush on festes of prime concern to Britain.
FIDI
lections n Spain
THE FOREIGN AND COMMONWEALTÎN SECRETARY said that the Spanish Prime Minister, Sener Felipe Gonzalez, and his Socialist Party had just managed to retain an absolute majority in the Spanish elections an 29 October. The Conservative opposition party, the Partido Popular, had been given a bad press but had done better in the elections than they or commentators had expected. The seats which the Socialist Party had lost had gone mainly to the United Left grouping. The outcome of the elections would create more difficulties for Senor Gonzalez who was faced by high levels of unemployment and inflation. A number of Cabinet changes were likely, including the appointment of a new Foreign Minister, since the present Minister, Senor Fernandez Ordonez, was expected to retire.
ong Kong
revious eference:
C(89) 29.3
THE FOREIGN AND COMMONWEALTH SECRETARY said that the important issues involving Hong Kong were likely to come to
a head within the next few months. On the first issue th Vietnamese boat people, he had examined the current situation and had reached the same conclusions as his two predecessors. It was difficult to avoid a solution which included an element of non-voluntary repatriation with
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