TNAG-1150-FCO40-1430-Relations-between-Hong-Kong-and-the-European-Community-1982 — Page 25

ZONI FDENIIAL

3.

The months leading up to the March 1983 elections

wi not be easy ones for the new administration: the

German economy is still in trouble.

unemployment may

hit the 2 million mark before the end of the winter and

growth is virtually zero and they have a tough budget to

push through the Bundestag. Herr Strauss is waiting in.

the wings for an opportunity to return to the centre stage

and Herr Genscher's position as FDP Chairman is under

serious threat: there is no guarantee that the FDP will

still be in the Bundestag after March.

4.

1

Dr Kohl has little time to. stamp his mark on the

Chancellorship before he seeks a mandate from the

country. The prestige to be gained from international

diplomacy will provide him with a useful electoral bonus.

He will therefore want the Summit to be a success; we

clearly share that interest.

о

OBJECTIVES

5. In general terms both sides will wish to use this occasion

+

to forge a new set of relationships at ministerial level,

to underline the high importance attached to Anglo-German

in

understanding and to continuitybur bilateral affairs, and

to emphasise the extent to which British and German

interests coincide.

Specific aims fall under five broad

headings:

(a) The Community

1

See Community Steering Brief.

(b)

International Economic and Trade Questions

Ministers will wish to exchange views on their

domestic economies and on the world economic situation;

CONFIDENTIAL