TNAG-1255-FCO40-1588-Third-countries-and-the-future-of-Hong-Kong-1983 — Page 220

X

CONFIDENTIAL

Volcker and Mr Regan. (The latter might also be tackled

about Unitary Taxation).

20. The breakfast meeting with members of the Senate

will include a number who are concerned with foreign

particula

affairs and questions of East/West relations and defence.

In view of criticism from some quarters in Congress that

Europe does not pull its weight in the Alliance and

proposals for the reduction of the US commitment in

Europe, the Prime Minister will wish to emphasise the

UK's support for the Administration's defence policies

and the extent of our own commitment to the Alliance.

She might also in this context mention the importance of

the implementation of the "two-way street". Since the

role of Congress in these matters is ommeil Members the

Senate should be reminded of UK concerns about the Export

Administration Act and Unitary Taxation and of the need

for a concerted effort by the industrialised countries to

combat protectionism. This could also be a valuable

Gracias

opportunity to explain the Government's Northern Ireland

policy to a sensitive audience.

CONFIDENTIAL