CAB128-94_A1b — Page 63

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sales by BR last year were taken into account, BR's claimed profit in that year of over £300 million became a current loss of over £400 million.

ONFIDENT

THE PRIME MINISTER, summing up the discussion, said that some sections of the press had suggested that the Government welcomed the disputes in the transport sector. This was wholly mistaken,

pt least given the very substantial sums of money which in cent years had been invested in British Rail and the London erground. The irresponsible actions of the public sector its concerned were driving business away from the railways. I disputes were not between the Government and the trade but between the trade unions and management. The Government's case, and its sympathy for the travelling public, must be presented vigorously. The Government had demonstrated its commitment to the railway industry by investing substantial sums in it was for the management of the industry to manage its staffithin the resources available to it.

The Cabinet

2.

Noted,

of its discut

approval, the Prime Minister's summing up and invited the Secretary of State for

Employment, the Secretary of State for Transport and other Ministers concer

take account of the points made in discussion in the farther handling of the various disputes.

ONFIDENT

FOREIGN AFFAIRS

Greece

Previous

Reference

CC(89) 22.3

3. THE FOREIGN AND COMMONWEALTH SECRETARY said that an unlikely coalition of New Democracy and July with the single objective in the Greek Parliament against in the Greek Parliament against

Left had been formed on 1 arting judicial proceedings histers of the PASOK Party

thought to have been involved irruption. This coalition government would have a limited team of three months, with the prospect of fresh elections in October. The new Prime Minister,

Mr

Tyannis Tzannetakis, was essentially a backroom organiser. Mr Constantine Mitsotakis, the leader of Hex Democracy, would keep control from behind the scenes and would be well-placed for the next elections. The former Prime

er, Mr Andreas Papandreou, had now been released from hospital.

by the

CONFIDENTIAL

Republic of Ireland

Previous

Reference

CC(89) 23.3

THE FOREIGN AND COMMONWEALTH SECRETARY said that atte Taoiseach, Mr Charles Haughey, to form a

following the recent elections in Ireland continued. was attempting to conclude a deal with the Progressive De

4

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