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g Q O • ' U-&a_n~3<x - \~to-u "71 ft FK NAIROBI 231322Z CONFIDENTIAL TO IMMEDIATE FCO TELHO ?501 DATED 23/9/75 RFI IMMEDIATE KAMPALA, /<j PRIORITY KINSHASA ANGLO/UGANDAN TALKS; FROM 1 1 . I DOUBT I F OVERALL WE COULD HAVE REALISTICALLY EXPECTED MUCH MORE TO COfiE OUT OF THE TALKS THAN FVEMTUALLY D I D . THE ATMOSPHERE WAS REASONABLY GOOD THROUGHOUT AND1IMPROVED AS WE WENT OH s AND WE MOVED A LONG WAY FROM THE WORRYING MOMENT AT THE OUTSET WHEN AM IM SAID THAT THE TALKS COULD BE CONCERNED ONLY WITH TRADE WHILE COMPENSATION- WOULD BE RESERVED FOR BILATERAL MINISTERIAL DISCUSSIONS LATER. 2 . THERE COULD HAVE BEEN A DANGER THAT WE MIGHT HAVE BEEN PRESSED FOR LOANS OR EXTENDED CREDIT AMD THAT IT MIGHT HAVE EEN HARD TO ACHIEVE AMY BALANCING PROGRESS ON THE COMPENSATION SIDE. IN THE EVENT THE GENERAL COURSE OF T " t TODE DISCUSSIONS WAS SATISFACTORY. WE WERE ABLE TO GET ACROSS THE POINT THAT MORE FAVOURABLE T K A D E AND"CREDIT TERMS CANNOT BE OBTAINED JUST FOR THE ASKING BUT HAVE TO-BE EARNED DY SATISFACTORY CONDUCT IN FINANCIAL AFFAIRS. THE UGANDANS ACCEPTED OUR LISTS OF COMMERCIAL AMD GOVERMF-'GNT DEBTS FOR STUDY AND GAVE. EVERY APPEARANCE OFVAVING THE GENUINE INTENTION OF IDENTIFYING WHAT MEEDS TO BE DONE ON THEIR SIDE WITHIN THEIR PRESENT CAPABILITIES. THEY STAVFD CLEARLY THAT. IT VMS NOT UGANDAN POLICY TO FALL INTO ARR;;AR OVER THE GOVERNMENT DEBTS AND THAT DELAYS IN PAYMENT WERE DUE I'O ADMINISTH-VFLVE AND FOREIGN EXCHANGE DI CFICULTIES. UGANDAN OFF'CIALS APPEARED TO ACCEPT OUR REFUTATION OF THEIR CLAIM THAT HMJ WERE DELIBERATELY HINDERING TRADE BETWEEN THE TWO COUNTRIES LUT THEY HAVE A VALID POINT IN CLAIMING THAT THERE ARE LARGE SO"- CF UGANDAN MONEY TIED UP IN LONDON IN PRE-PAYMENT DEPOSITS. I HOPE WE CAN• ENCOU3AG DISCUSSION BETWEEN THE UGANDANS .'.MT> BRITISH BANKS AND OTHERS CONCERNED OI> THIS QUESTION', CONFIDENTIAL