TNAG-1255-FCO40-1588-Third-countries-and-the-future-of-Hong-Kong-1983 — Page 219

CONFIDENTIAL

for the 1984 Economic Summit which will fall in the

middle of the US election year.

Bilateral Problems

18. British interests are currently threatened by a

number of American actions in the field of trade and

commerce. The use of the Export Administration Act, the

application of unitary taxation and the anti-trust suit

against British airlines are obvious examples. The Prime

Minister might point out that the political and economic

damage, which American actions in this field cause to the

United States's closest allies, threatens the fabric of

the Alliance as a whole.

Sympathetic American officials

have made it known that they think it would be helpful if

the main points at issue were put to the President

personally by the Prime Minister. The Prime Minister

might propose that there should be further discussion

among officials of the implications for our relations,

while reaffirming the importance which we attach to

securing improvements in the Export Administration Act

and the elimination of Unitary Taxation provisions.

Thatchercould underline British willingness in return to

play an effective role in supporting US efforts to

regulate the flow of technology to the Soviet bloc.

Mrs

HANDLING OF OTHER MEETINGS

19. Much of the same ground can be covered in the Prime

Minister's meetings with the Members of the

Administration, particularly Vice President Bush.

Economic subjects will obviously predominate with Mr

CONFIDENTIAL