FIRST SESSION OF TALKS WITH CHANCELLOR

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F I R S T SESSION OF TALKS WITH

CHANCELLOR SCHMIDT

ANGLO/GERMAN RELATIONS

Welcome. Importance of Anglo/German

r e l a t i o n s h i p n o t o n l y t o e a c h o f us

but to Europe.

EEC

The G o v e r n m e n t ' s d e t e r m i n a t i o n t o make

a s u c c e s s o f t h e Community and t o be

w h o l e h e a r t e d a b o u t UK m e m b e r s h i p .

The G o v e r n m e n t ' s d e t e r m i n a t i o n t o

s t r e n g t h e n a n d r e v i t a l i z e t h e UK economy

o u t l i n e proposed measures.

B u t t h e p r o b l e m s c r e a t e d f o r us by t h e

CAP and t h e Community's b u d g e t a r y

arrangements are a major handicap both

to t h e Government's European p o l i c y

and t o i t s e f f o r t s on t h e e c o n o m i c f r o n t . D e t e r m i n a t i o n t o seek major adjustments

which would i n the long term b e n e f i t

t h e Community as w e l l as t h e UK.

DEFENCE

F u l l y a p p r e c i a t e the importance of the

Theatre Nuclear Forces issue.

I n v i t e Chancellor Schmidt's views.

S u g g e s t we i n s t r u c t o u r two D e f e n c e

M i n i s t e r s to arrange a s p e c i a l meeting

v e r y soon t o d i s c u s s t h i s p r o b l e m .

/TURKEY



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TURKEY

F u l l y accept importance o f keeping

T u r k e y w i t h us i n E u r o p e .

B u t t h e T u r k s must a c c e p t t h e IMF's

t e r m s a n d t h e y must p u t t h e i r h o u s e

in order.

S u b j e c t t o t h i s , we w o u l d be p r e p a r e d

t o make some i n c r e a s e i n o u r c o n t r i b u t i o n

to t h e s h o r t term a s s i s t a n c e e f f o r t

/ d e p e n d i n g on o u t c o m e o f m e e t i n g o f

officials/.

PLENARY SESSION

How s h a l l we t a c k l e o u r P l e n a r y s e s s i o n

tomorrow?

W o u l d y o u be w i l l i n g t o s h a r e w i t h us

y o u r v i e w s on e a s t - w e s t r e l a t i o n s ?

What o t h e r t o p i c s s n o u i a we d i s c u s ' s ?