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bargain which would result in a genuine reduction in arms. Hitherto the USSR had sought to justify their increasing expenditure on arms in terms of their relationship with the Chinese:
but we wanted to secure a Soviet reduction in arms confronting Western Europe. He thought that the Soviet Union and countries of Eastern Eurone were anxious to improve relations with the West.
14. Reverting to the EC, Mr Murray referred to the special interest of Britain in the field of social affairs and employment policies. He enquired whether Mr Callaghan had seen any point of view developing within the Council of Ministers or the Commission about the special problems which were now facing this country. Mr Jones interjected to say that prior to the referendum we had been told that West Germany, for example, would respond to our needs. When could we expect them to give practical support to Britain? Mr Murray added that the Governments and Central Banks of the Western European countries should give practical help to us rather than take part in hastening the depreciation of our currency. Similarly those Governments who supported us in the IMF and other international financial fora should act to secure the breathing space we need for economic recovery. Mr Callaghan said that Britain's economic problems would continue to be discussed with other countries in the EEC. He pointed out that neither Governments nor Central Banks could control speculation by masses of individuals across international frontiers.
15. In concluding the discussion on EEC matters, Mr Jones said the TUC would like the Government to keep them informed of developments within the EEC institutions so that the TUC in turn could comment on them. Mr Callaghan said that was important and invited the TUC to look at their own structural arrangements for the conduct of EEC business. If the TUC established a structure, he himself would constitute a parallel structure within the FCO so that if the TUC fed in comments we should be able to provide a quick reaction. For example, Mr Callaghan would like an exchange of views on energy problems.
Rhodesia
16. Mr Jones expressed the TUC's concern over the recent killing of 13 African citizens and emphasised that the TUC wished to see increasing liberalisation and progress towards majority rule in Rhodesia. The TUC were anxious that the Minister of State, Mr Ennals, during his forthcoming visit, should seek the views of the two main national trade union centres: the African Trade Union Congress (ATUC) and the National African Federation of Unions (NAFU).
17. Mr Callaghan said that Mr Ennals would be leaving on Sunday, 22 June. He would go first to South Africa where he would see the Foreign Minister before going on to Mozambique for that country's independence celebrations. From there he would travel to Salisbury where Mr Smith had said he would see him and put forward "substantive proposals". Mr Callaghan did not know what this
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