TNAG-1256-FCO40-1589-Third-countries-and-the-future-of-Hong-Kong-1983 — Page 188

CONFIDENTIAL

DSR 11C

10. The Prime Minister will also wish to discuss

the world economy with an eye to the London Economic

Summit next year. The Germans remain particularly

concerned about high US interest rates... Discussion will

centre on the prospects for growth, inflation and

unemployment (the Chancellor still gives youth

unemployment a high priority).

Anglo-German Relations

11. The closeness of Anglo-German relations will

permeate the atmosphere at the Summit. officials are

currently working on the review of the Anglo-German

relationship called for at the November 1981 Summit and

should be ready to report in spring 1984.

12. There are few bilateral industrial ventures that need

to be discussed in detail. However, the Germans are

likely to raise the question of the launch aid for the

Airbus A320.

Handling the Meeting

[To be expanded]

13. Over dinner on 8 November, the Prime Minister may

like to suggest discussion of East/West relations and

INF.

Chancellor Kohl will appreciate the early

opportunity to explain his domestic concerns.

Discussion will inevitably encompass transatlantic

relations against the background of the Prime Minister's

recent visit to North America.

CONFIDENTIAL