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2. Sir John Coles said that Dr Keating (DPMC) had confirmed the important message that the Australian Prime Minister was concerned that there should be no rapid or dramatic change in the relationship because of the debate about a republic, which was nothing to do with HBMG. The Secretary of State was keen to strengthen bilateral ties. We hoped to confirm dates for Mr Keating, Senator Evans and Mr Crean's London talks soon. wanted to stay in close touch over developments in the Asia-Pacific region.
Maralinga
3.
We
Mr Smith referred to Sir J Coles's discussion on 10 May with Senator Evans (Canberra Telno 215). Mr Rawson (DPIE) underlined the need for an early resolution. Sir J Coles said that Ministers would need to consider the Australians' recent reply.
Frozen Pensions
4.
(a)
(b)
Mr Smith and Mr Stewart (ADSS) made the following points:
Continued Australian concern.
Time for Britain to demonstrate commitment to dialogue.
(c) If no progress, Ministers would consider if it was appropriate
to maintain the bilateral Social Secretary Agreement. Withdrawal of the Agreement would reduce attraction of Australia to people coming from Britain with pensions: they would have no access to Australian pensions before 10 years' residence. Entitlements of British pensioners returning to Britain from Australia would also be curtailed.
(a)
(e)
5.
Sympathetic to economic difficulties, but understood that a surplus of £6 billion existed in accumulated British pension funds.
Britain's approach seemed not governed by principle: Britain had agreed to unfreeze pensions throughout the EC and US (over 67,000 pensioners).
Sir J Coles saw no prospect of policy change: unfreezing would cost about £120 million pa in Australia: £275 million pa world-wide. Cannot separate Canada, New Zealand and Australia (in total over 270,000 British pensioners). Problem was financial.
Uruguay Round
6.
(a)
DFAT team made the following points:
Greatly reassured by Mr Major's active interest.
(b) EC and US should move to a conclusion as soon as possible.
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