TNAG-1255-FCO40-1588-Third-countries-and-the-future-of-Hong-Kong-1983 — Page 134

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DSR 11C

and on ways of influencing the peace process. The French

appear to have had second thoughts about the sale of

super Etendards to the Iraqis; we should express our

concern for the Gulf if the sale went ahead.

11.

The Prime Minister will no doubt wish to discuss

briefly the world economy with an eye to the London

Economic Summit next June.

Anglo-French Relations

12. At the last Summit the Prime Minister and President

Mitterrand agreed on closer contacts exercise between

British and French officials.

The exercise revealed an

already wide-ranging set of official contacts which has

been further expanded, and deepened, including in the

Community sphere. Progress should be reviewed and the

Joint Report examined. In the past year few

Anglo-French differences (no-passport excursions apart)

have been the subject of public polemics. This may be

partly due to the improved bilateral atmosphere since

M. Mitterrand came to power. But the closer contacts

exercise itself aims to keep the temperature down, and,

more positively, to identify and build on areas of common

ground. The Prime Minister will wish to endorse the

objective of fostering the habit of consultation, and

where possible, co-ordination on the widest practicable

range of issues at all levels. President Mitterrand has

formal invitation been asked whether he would accept to pay a State Visit

to the UK next year (the 80th anniversary of the Entente

Cordiale).

a

CONFIDENTIAL