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( w ~ r^*f^i*> ~' ' w --' -' -•• - <• v'; L o 8 A G £ SERIAL 1O DOWNING STREET THE PRIME MINISTER 12 September 1975 Dear Mr. President I am pleased that the official talks on compensation and trade matters which Mr. Callaghan discussed with you during his visit to Kampala on 10 July are due to start on 15 September. It is my hope, and I know it is yours, that these will eventually lead to a normalisation in the relations between our two countries. The official team will be led by Mr. Donald Hawley, CMG, MBE, a most experienced Under Secretary in the Foreign and Commonwealth Office. He will, of course, be advised by Mr. Hennessy with whom you are accustomed to deal. As you know, my Government's major concern is the payment of compensation to British subjects of both European and Asian origins whose property was expropriated in Uganda under Decrees 27 and 32 of 1972, as subsequently amended. You know, I think, that we regard a degree of real progess on this problem as essential before relations can be truly normalised. My officials will also be prepared to discuss trade questions with yours. I understand that the Ugandan side will wish to raise the question of credit terms. We have, of course, put no obstacles in the way of trade with Uganda but the very substantial commercial debt in various fields for which the /Government of