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Registry No. •RAFT LETTER Type 1 + SECURITY CLASSIFICATION 7 o DC z z z IXI £ LU 03 O a z Xoz Top Secret. Secret. Confidential. Restricted. Unclassified. To:- PRIVACY MARKING o d 2oo o In Confidence HE The President of the Republic of Uganda El Hajji Field Marshal Idi Amin Dada FR#M THE PRIME MINISTER Telephone No. Ext. Department I am pleased that the official talks on com- pensation atad trade matters which Mr Callaghan discussed with you 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/6y Mr Donald Hawley CMG MBE, a most experienced Under Secretary in the Foreign and Commonwealth Office. He will, of course, be advi/sed by Mr Hennessy with whom you are accustomed to deal. As you Iff^v, my Government's\ major concern is thepayment of compensation to British subjects of both European and As,dan origins whose property was expropriated in Uganda under Decrees 27 and 32 of 1972, as sub/sequently amended. You know, I think, that we regard a degree of real progress 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