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Industry in London. The United States Administration recognised that Britain had brought about improvements in the directive but were still puzzled as to why Britain was not able to block the directive, which was likely to be approved at the Foreign Affairs Council in early October. He had explained the provisions of the present directive, including the improvements obtained by Britain.

In a brief discussion, it was noted that the directive still contained protectionist features, since the French Government was determined to protect the role of the French language.

tinuing, the FOREIGN AND COMMONWEALTH SECRETARY said that the second problem had been the issue of Vietnamese boat people. He had explained the problems facing the Hong Kong Government and the measures which were now contemplated in response. The United States Administration now had a much clearer understanding of the issue and of the need for action. But they were very concerned over pressure from Con grese

The most that could be expected from the United States doverment was either silence or a relatively neutral reaction. reaction. At the same time they had agreed to help to persuade the United Nations High Commissioner for Refugees to take a more positive attitude, espey over counselling and reception arrangements.

THE FOREIGN AND

MONWEALTH SECRETARY said that the United States Government had warm welcomed the Prime Minister's message to President Bush on assistance for Poland. The United States Government was expecting considerable pressure from Congress to make available substantial ads very soon. The United States Government accepted that an agreement between the International Monetary Fund (IMF) and Poland was an essential component, though there was some difference of view within the United States Administration on the timing of such an agreement on elation to the rescheduling of Polish debts.

In a brief discussion, it was pointed out that there was a risk that Congress might put pressure on the Administration to make lavish aid available to Poland. The question of assistance for Poland and Hungary would be discussed at the Group of Seven meeting in Washington next week in the margins of the IMF and World Bank Annual Meetings.

THE FOREIGN AND COMMONWEALTH SECRETARY said he had also discussed the Middle East situation with the United States Government which was trying to put more substance into the Israeli Minister's recent proposals. President Bush had not responded when he had described the situation as relatively static, but Mr Baker had assured him that the United States Government was putting pressure on the parties involved through President Mubarak of Egypt. However, there were no illusions that early progress was likely, though United states pressure might have contributed to the relative moderator the Palestine Liberation Organisation's attitude. He had ale discussions in Washington on Lebanon. Before his visit the Deputy

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