TNAG-2348-FCO40-3417-Political-relations-between-Hong-Kong--China-and-Canada-1991 — Page 33

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From the Private Secretary

Dean Richards

CONFIDENTIAL

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(DROI

10 DOWNING STREET

LONDON SWIA 2AA

HKD 021/3

RECEIVED?

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INDEX

29 JUL 1991

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Dr Bagne pherson

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CALL ON THE PRIME MINISTER BY PRIME MINISTER MULRONEY Bus

OF CANADA: 14 JULY

Thank you for the briefing which you provided for

nuday nr Tail

Mr Mulroney's call on the Prime Minister which took place thiste morning. He was accompanied by the US Sherpa, Derek Burney, and Gomez by his Chief of Staff, Norman Spector. Nigel Wicks was also Hea present. The following were the main topics.

G7 Summit

Есспаний CSAD

The Prime Minister and Mr Mulroney agreed that the French would be very difficult over the arms declaration, even though) they would be isolated. It would, said the Prime Minister, be CD bizarre if the Group of Seven had nothing to say on this issue and he would push pretty hard. Mr Mulroney said that he would Planne

Special Adven

too.

News

(bycry У

The Prime Minister saw the Uruguay Round as a significant A Fai priority for the Summit. The Houston Declaration now rang a bit hollow. The European Community was perceived as digging in on agriculture. There was a risk of a split with the Cairns Group. The US was being restrictive on services and intellectual property. The French believed that the US were cooler on reaching agreement and believed that if they (the French) did not Proble move they would not have to take the sole blame for failure. The Prime Minister had heard Mitterrand at his most stubborn on this

laced with a good deal of anti-Americanism. We would look stupid at the G7 Summit if we did not give a good push to the GATT and a pledge of personal involvement by Heads of Government. The key was to get Kohl to desert the French so that they were persuaded of their isolation.

Ambassador Burney commented that the Americans had made a major push on the GATT at Houston. The lack of response had left them rather subdued and they did not want to be as exposed again. But they had not walked away altogether. It was hard for the Americans to handle two difficult bits of trade legislation at once and at the moment they were focusing on their negotiations with Mexico.

Mr Mulroney asked about the McSharry proposals. The Prime Minister said that they were less good for their content than for the impetus they gave to reform. But we would not achieve

!

CONFIDENTIAL