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Foreign and Commonwealth Office London SW1A 2AH 12 September 1975 n. J Anglo-Ugandan Relations During his talks in Kampala with President Amin in July Mr. Callaghan undertook to despatch an official delegation to Uganda to discuss Anglo-Ugandan relations and, in particular, the questions of compensation for British property, trade and credit, and spare parts for British military equipment in the possession of the Ugandan armed forces. Negotiations about these talks have at Ugandan insistence been conducted through the Zairian Foreign Minister. This has been a complicated and time-consuming exercise, but it has now been accepted that talks will begin in Kampala in the week beginning 15 September. From the informal discussions between our Acting High Commissioner in Kampala and the Ugandan Acting Foreign Minister it has become clear that the Ugandans are moving away from the position agreed between President Amin and Mr. Callaghan. They are now calling into question our good faith over the negotiations on the grounds that we are insisting on progress over compensation before any arrangements on trade questions agreed upon at the talks can be implemented (we have long insisted on a solution of the compensation problem as a pre-requisite for any normalisation of relations). They have also indicated that they will wish to raise the question of a general renewal of British arms supplies to Uganda. This goes well beyond what Mr. Callaghan agreed with President Amin and the position outlined by the Prime Minister in his letter of 25 June. We cannot consider substantive discussion of a renewal of arms sales. Killings in Uganda continue although on a lower rate and we would come under severe criticism both in this country and from our friends in Africa and Europe if we were to lift the embargo (which has never been openly announced nor communicated to the Ugandans). /These Patrick Wright, Esq., 10 Downing Street, London S.W.I. CONFIDENTIAL