TNAG-1254-FCO40-1587-Third-countries-and-the-future-of-Hong-Kong-1983 — Page 35

"CONFIDENTIAL

remained firm since the devaluation earlier this year.

But France's basic economic difficulties remain and the

President will-have little domestic room for manoeuvre

during the Community's negotiations this autumn.

3. It is too early to decide on the British team at the

and

Summit. Community and Defence Security issues will

figure large on the agenda but much will depend on how

these topics are to be approached, on what other agenda

items emerge and on whom the President wishes to bring

with him. Apart from the Prime Minister and the Foreign

and Commonwealth Secretary, it would be usual to include

the Chancellor of the Exchequer and the Secretary of

State for Trade and Industry, but the latter will be out

of the country during the second half of Ocotber The

Secretaries of State for Defence and Energy know they may

be needed as do the Ministers of Agriculture and of

Trade.

Hitherto the French have always been reluctant to

include Defence Ministers in the Summit.

4. The main areas for discussion are likely to be:

i) European Community. The autumn negotiations will be

in full swing. The main French objective will be to

cling to advantages won in previous bargaining and to

secure solutions for the future which are essentially

defensive. There is a growing feeling that the EC can no

longer be relied on to protect and promote French

interests automatically.

However, outwardly they will be

making a major effort to show themselves as worthy

custodians of the spirity of the Treaty.

They will