TNAG-1254-FCO40-1587-Third-countries-and-the-future-of-Hong-Kong-1983 — Page 36

CONFIDENTIAL.

advocate new policies in areas of particular conceDSRtric

them e.g. on energy, monetary reform and industrial

agencies. We expect to find considerable identity of

interest with them on the last point but they have yet to

make clear their proposals. Similarly we await

clarification of French proposals for écrêtement des

soldes which will probably emerge before the special

council at the end of September. Our position on

agriculture is diametrically opposed to that of the

French for whom the Commission's recent proposals will

have greater appeal. We shall need to insist on the

positive approach inherent in UK attitudes. EC/US

relations, particularly on trade-related issues, will

feature as will enargement where the French will wish to

be seen to be making some progress during their

Presidency in the first half of 1984. Officials will

have met on 4 October to go over Community and other

economic and related issues in advance of the Summit.

**

of the

ii) Defence and Arms Control. The positions

Dutch, Germans and Belgian Governments on the INF

dual-track decision have shown further signs of erosion.

French support for the decision (to which they are not a

party) remains firm but less vocal. The Summit will

provide an opportunity to discuss how European resolve

can be stiffened and the pro-deployment arguments best

presented. It will be particularly important to agree

with the French a common line on the rôle of the French

and British independent deterrents which may become the

major sticking point in the Geneva negotiations.

CONFIDENTIAL

On the