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régime in Chile. For example, Peru and Chile are always threatening action against each other. Mr Callaghan, however, went on to reveal that in concluding an agreement last week for the supply of British technology to Egypt, Britain had been asked to enter into a Memorandum of Understanding that there would be no interference with supply. The Government must also take into consideration that British companies enter into contractual obligations and that a breach of those obligations involves a financial penalty. We had decided rightly that the supply of arms to South Africa should be cancelled but nevertheless we have had to overcome reverberations to this action in other parts of the world. Mr Jones said he could do no more than note the Secretary of State's view.
21. Mr Callaghan expressed the British Government's concern over the number of political prisoners in Chile: there were over 5,000 detainees - by the Junta's own admission. Serious injustices were taking place and the Government were continuing to make representa- tions. Mr Jones said he thought that Chile was falling apart because of its crumbling economy. But Mr Callaghan said that Latin American countries thought that the Junta was likely to last for some time and he hoped that the trade union movement in Britain would keep up its pressure for changes to be made in Chile.
22. Mr Jones said he had received information that Francisco Gomez, a married man with two children, an official of a union equivalent to the CPSA, and a member of the Socialist Party in Chile, had been detained. Mr Callaghan asked for details and said that the Ambassador in Santiago would make appropriate enquiries. He confirmed that the Ambassador had instructions to follow up all these
cases.
Cyprus
23.
Mr Jones expressed concern that Turkey is seeking to buy arms. Mr Callaghan said that no British arms had yet been supplied to Turkey, though some had been sent to Greece. British policy was that every application would be considered on its merits. He thought this was preferable to American policy where the US Congress had put an embargo on the sale of arms to Turkey. This type of action only made the Turks more stubborn and more reluctant to make concessions; a point which had been emphasised to Mr Wilson and Mr Callaghan by the Turkish Prime Minister when they met recently in Brussels. Talks were still proceeding in Cyprus between Clerides and Denktash. The atmosphere of these talks was not unfavourable and British policy was to encourage them to talk and to watch for a suitable moment to intervene. He hated responsibility without power. Both sides knew that we were prepared to help if they sought our assistance.
24. Mr Jones said that the Confederation of Cyprus Workers (SEK) had invited the TUC to visit Cyprus to take stock of the situation. The TUC had accented this invitation but only on condition that
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