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CONFIDENTIAL
15. Sir Geoffrey Howe endorsed Mr Clark's views on the importance of trade liberalisation and emphasised the need for consultations and mutual support among like-minded countries on work in multi-lateral organisations. He also agreed with what Mr Clark had said about attitudes to the US. It was necessary to talk candidly to the United States about major issues but at the same time to make it clear that we were to be counted among their friends. He remained concerned at the prospects for the US economy and implications for the world economy which emphasised the need for other countries to keep closely in touch.
16. Mr Clark raised the question of the New Zealand Government's ban on nuclear ships and wondered how far they were committed to this position. Sir Geoffrey Howe indicated his understanding that something more acceptable might emerge. Lady Young said that Mr Lange was undergoing a quick learning process and noted that he had to take account of the strong support he had received from a left wing anti-nuclear group.
Commonwealth
17.
Sir Geoffrey Howe said that UK supported certain proposals to amend institutional arrangements for Commonwealth Heads of Government Meetings now under consideration by senior officials and hoped Mr Clark would consider them carefully. We were also trying to float general tactical proposals on terrorism on the Commonwealth front. The study on security of small States was not yet complete, but the UK considered regional co-operation most important and was trying to encourage it. Mr Marchand and Mr Clark indicated that the DEA was sympathetic to the British position on length of CHOGM meetings and an enhanced role for Foreign Ministers, although they did not know Mr Mulroney's views.
Caribbean
18. Mr Clark said Mr Seaga had been in touch with Mr Mulroney about a meeting of regional Commonwealth Prime Ministers at the end of February. It would be most helpful if Mr Mulroney could be informed of UK thinking on regional links before this, his first Commonwealth meeting. Sir Geoffrey Howe said that the UK and Canada should keep closely in touch on Caribbean affairs. It was noted that Tri-partite US/Canada/UK official talks on the Caribbean would be held at Chevening in February. Mr Marchand said Canada would welcome Britain's views in preparation
CONFIDENTIAL
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