CAB128-94_A1b — Page 73

CONFIDENTIAL

NFIDENT

Europ

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THE FOREIGN AND COMMONWEALTH SECRETARY said that the United States President, Mr George Bush, had completed his visit to Poland and was now in Hungary. His presence had given great encouragement to democracy. The United States position on economic assistance was generally close to that of the United Kingdom. The help he had publicly announced for Poland was fairly modest - rescheduling of debt due for repayment this year nd a sum of $115 million for specific assistance, subject to

ngressional approval. On the question of Polish debt it was

ortant to maintain pressure for an agreement with the national Monetary Fund and for economic reform, and this Word seed to be considered further at the forthcoming Summit of heads of State and Government of the seven industrialised countries in Paris. Recent attempts by the Federal German Republic to put together a major economic package for Poland appeared to have failed. President Bush would no doubt also announce meat aid for Hungary during his visit to Budapest though defail) were not yet available and the position of the Hungarian

was less serious.

Republic of South Africa

Previous Reference:

CC(89) 15.3

THE FOREIGN

AND

meeting between the

WEALTH SECRETARY said that the recent African President, Mr P W Botha, and the imprisoned leader of he African National Congress (ANC), Mr Nelson Mandela, did not be ad any specific new initiative. But their joint endorsement

case for peaceful development in

CONFIDENTIAL

South Africa

was being terpreted

as

a move towards the

repeated demands that the

that the should repudiate violence in pursuit of its ends. THE PRIMEISTER said that the fact that

should be welcomed.

this meeting had taken place &

The Cabinet

Took note.

-

COMMUNITY AFFAIRS

Economic and Finance Council

10 July

first meeting residency had the holding

4. THE CHANCELLOR OF THE EXCHEQUER said that of the Economic and Finance Council of the French been held on 10 July. A useful innovation had of a surveillance discussion, in highly restricession, of the economic policies of member countries. The interest in the discussion had been the pressure put to do away with subsidies to industry including tho

pint of Germany

and shipbuilding as well as agriculture. This issue had been raised initially by Belgium but the Netherlands and Franc taken it up in addition to the United Kingdom. The Finance Ministry representative had privately welcomed these

coal

LO

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