TNAG-1255-FCO40-1588-Third-countries-and-the-future-of-Hong-Kong-1983 — Page 44

CONFIDENTIAL

2

I agree that the problems of Southern Africa should be

discussed by Commonwealth leaders in order to see how best to

contribute to the search for solutions. I share your

disappointment at the slow rate of progress towards Namibian independence. I shall naturally be ready, with Mr. Trudeau, to give an account of the activities of the Contact Group. Some of our colleagues will no doubt want to discuss implementation of Gleneagles, but I would hope we need not spend a great deal of time on this. I was, as you know, greatly encouraged by the decisive vote by the MCC against sending a team

to South Africa.

As you suggested to Janet Young in July, it might be opportune

for me to bring Heads of Government up to date on our thinking on

the Falklands. I would propose to say something about our plans

for the Falkland Islands, to thank those of our colleagues who

have given us general support on this issue and to urge them to

continue doing so.

As you say in your letter there has been a great deal of discussion about international economic issues in the first half of 1983. The reality of interdependence is now generally accepted. An enduring recovery in the world economy will do more than anything else to alleviate the problems currently facing the developing countries. We are at present studying the report entitled "Towards a New Bretton Woods", which you sent me on

12 September and about which we spoke when you came to see me.

I agree that we should look closely at the various aspects of functional co-operation within the Commonwealth. I am sure you are right to say that, in present financial circumstances, we should aim for a period of consolidation. If there are to be proposals for increased activities in any area, it would be helpful if these could be costed, and if proposals could also be put forward for balancing savings.

/I look