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numbers of refugees, it would not diminish the pressure to leave. There had been demonstrations in Leipzig, Dresden and other East German cities. The demonstration in Leipzig on 2 October had been the largest since the 1953 Uprising. These events provided an uncertain background to President

Gorbachev's planned visit to the GDR on 7 October for the 40th Anniversary. It was clear that the Soviet Foreign Minister, Mr Eduard Shevardnadze, had exerted pressure behind the scenes on

he GDR government to acquiesce in the latest exodus.

NFIDENTIA

Panama

Previous Reference:

CC(89) 18.3

THE FOREIGN AND COMMONWEALTH SECRETARY said that the coup attempt in Panama by junior officers on 3 October had been defeated by forces loyal to the President, General Manuel Noriega. The President remained in control, while the leader of the cup,Major Giraldi, was under arrest. There had been no threat itish citizens or property during the disturbances. The United States Administration had denied involvemente attempted coup, although for some time they had been openryuraging the Panama Defence Force to act against General ortega.

rega. A White House spokesman had admitted that the United States Administration had foreknowledge that something was planned out they appeared to have been taken by surprise by the actual developments. The short term effect of the failed coup would be to consolidate General Noriega's grip on power. But the fact that the coup had almost succeeded, despite the earlier purces of disaffected officers, showed that his power base was increase narrow. Britain and other European Community countries should continue their policy of isolating General Noriega's regime. In that context, the

posting of the new British Ambasador to Panama had been deferred.

A

United Nations General

Assembly in New York

THE FOREIGN AND COMMONWEALTH SECRETARY said that he had had a wide range of useful meetings with other Foreign Ministers while he attended the United Nations General Asin New York during the previous week. He had found the new Hungarian Foreign Minister, Dr Horn, both forthcoming an impressive. Horn had expressed doubts whether the Hungarian/alist Workers Party (HSWP) would be able to govern on

n after

Dr

the impending elections. He believed the HSWP might obtain around 35 per cent of the votes. He had made clear that Hungary welcomed Western support, and was evidently concerned in case Western governments focussed their attention on Poland

exclusion of Hungary.

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CONFIDENTIAL

SENTIAL

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CONFIDENTIAL