TNAG-1534-FCO40-2098-Hong-Kong-Vietnamese-refugees-repatriation-1986 — Page 5

CONFIDENTIAL

RECORD OF MEETING BETWEEN THE MINISTER OF STATE AT THE FOREIGN AND COMMONWEALTH OFFICE AND THE SECRETARY-GENERAL OF THE UNITED NATIONS HELD IN NEW YORK ON 14 OCTOBER 1986

Mr Timothy Renton Sir John Thomson

Mr J Perez de Cuellar Mr M I Goulding

Mr J A Birch

Mr P Westmacott

Mr G Picco

1. Mr Renton congratulated Mr Perez de Cuellar on his re-election as Secretary General. Mr Perez de Cuellar said that it had been a difficult decision to run again but in the present circumstances it had been impossible to say no.

2. UN Financial Crisis

Mr Renton asked whether there had been any progress towards resolving the financial crisis. Mr Perez de Cuellar said that there had been some "positive indications" from the US Administration who were lobbying hard in Congress. But however much was forthcoming it would not be enough. The UN needed $120 million this year and $60 million in January. A total of $210 million was due from the United States but it was unlikely that all of this would be forthcoming. Mr Renton asked whether the combination of the financial crisis and the Report of the Group of 18 would lead to some fundamental reforms within the United Nations. Mr Perez de Cuellar said that now that he had been re-elected he would not wait for the Group of 18 report to be accepted before tackling essential reforms. It was his duty as Secretary General to act and he had plans, likely to be announced in the next week, which were "going to shake the house". It was essential to convince members that the crisis was real and already upon the Organisation.

3. Iran/Iraq

Mr Renton said that the United Kingdom were increasingly worried about the Iran/Iraq war. Did the Secretary General see any sign of progress or new role for the United Nations? Mr Perez de Cuellar said that he had sent the recent Security Council resolution to both governments. Iraq had responded that it was ready for a ceasefire, withdrawal of troops and exchange of POWS. But Iran wanted to see the Iraqi regime toppled as a pre-condition. It was only prepared to take a piece-meal approach by talking about such things as non-use of chemical weapons. Mr Renton commented that there seemed to have been an interregnum since Mr Palme's death. Would Under-Secretary Cordovez be going to the area soon? Mr Perez de Cuellar did not see the necessity. The two sides wanted the Secretary General, not his deputy. If an opportunity arose he would go without hesitation and try to use the weight of his office to bring about a solution. But without an opening he feared that both

-1-

CONFIDENTIAL

42.