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Your recent undated letter on this subject contained some suggestions as to the subjects which might be raised at the Prime Minister's working lunch with President Reagan on 27 May and at the pre-lunch session of talks. You also said earlier that you would welcome guidance on participation in these events.
In general, the Prime Minister will be guided by President Reagan's wishes. She does not want to press the Americans to adopt our ideas.
If the President suggests that his working lunch should be devoted to a discussion of Williamsburg issues and international economic questions, she will find this acceptable. Similarly, she would be guided by his views on the participants in the discussion. If the Americans seek our views on the latter point you could propose that the Chancellor of the Exchequer, the Foreign and Commonwealth Secretary, Sir Oliver Wright and a Private Secretary are present. If the US Sherpa is to be present, it would be helpful if Sir Robert Armstrong could also be invited.
As regards the pre-lunch talks with the President, the Prime Minister would prefer a tete-a-tete, perhaps with notetakers. But again she leaves that to the President. If he envisages a larger meeting, the Prime Minister would like to be accompanied by the Foreign and Commonwealth Secretary, Sir Oliver Wright and a Private Secretary. Mrs. Thatcher hopes that the agenda can be left flexible but at this stage would expect to discuss East/West relations, nuclear issues, the Middle East and perhaps Central America, Belize and the Falklands. The other questions to which you refer (US anti-trust proceedings against British Airlines and the US Export Administration Act) can be considered nearer the time. The Prime Minister will also want to have a word with the President during these talks about the world economic situation, notwithstand- ing possible discussion of this subject also at the working lunch.
I agree with the subjects you suggest for meetings with Mr. Weinberger and Mr. Volcker. The Prime Minister would be grateful if the Chancellor of the Exchequer would accompany her
CONFIDENTIAL
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