TNAG-1255-FCO40-1588-Third-countries-and-the-future-of-Hong-Kong-1983 — Page 129

CONFIDENTIAL

ANGLO-FRENCH SUMMIT: 20-21 OCTOBER 1983

GENERAL BRIEF

BRIEF BY THE FOREIGN AND COMMONWEALTH OFFICE

DSR 11C

Introduction

1. This is the first of the two regular bilateral Summits

this autumn (the Anglo-German Summit is on 8-9 November).

Both will be dominated by discussion of the

post-Stuttgart Negotiaticr and of East-West relations, in

particular INF. The progress made at these two Summits

could have a major impact on the prospects for the Athens

European Council. President Mitterrand will be the

tougher nut to crack.

2. It is nearly one year since the last bilateral meeting

between the Prime Minister and the President (in Paris on

4-5 November 1982). The intervening period has been a

difficult time for M. Mitterrand. He has seen the

reversal of many of his socialist hopes. The failure of

the dash for growth and the adoption of more austere

economic measures were a bitter pill for the Socialists

to swallow. Although much of the French population is

disillusioned, the economic indicators have begun to

brighten and the slide has been halted.

The budget

for 1984 is severe. It is based on a GDP growth target

for 1984 of 1% and assumes that inflation will be brought

Mitterrand's position

down to 5% by December next year.

CONFIDENTIAL