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10 CONFIDENTIAL of talks on the subject of compensation. In December 1974 we had sent a Note to the Ugandan Government enquiring by what channels the question of compensation could be pursued. In February 1975 General Amin sent an insulting reply to this Note but ended by saying that he would like to talk about compensa- tion. We then said that we would be prepared to send a delegation to Uganda for this purpose but there was no reply to our offer. Then in April 1975 General Amin said that he would be prepared to pay cash. A week later he said that the issue was closed and there was no question of paying anything. The following month he said that the question could be opened again if the Prime Minister would come to Uganda. This summary of events illustrated the extraordinary methods adopted by General Amin with which we found it impossible to cope. We had never experienced anything quite like this. Could the President advise us how to act? 5. President Mobutu said that he certainly intended to help though he would need Mr. Callaghan's help too. He had taken careful note of what Mr. Callaghan had said both about the British community and about the outstanding questions. He would take account of all this when giving instructions to the State Commissioner who would be going to Kampala. In his view, the situation should be tackled in two stages. First it was necessary to settle the Hills affair. There could be no question of bargaining over this or mixing up this question with other matters such as the supply of equipment, etc. Mr. Callaghan said that he fully agreed. President Mobutu said that thereafter once this question was settled it would be possible to consider some machinery for dealing with the other questions. The first possibility would be a mixed committee to consider all these questions. Mr. Callaghan agreed. We must close the old chapter before we could start on the new one. Once the old chapter was closed we should certainly try in good faith to embark on a new and better relationship. But we must remember that public opinion in the United Kingdom had been much inflamed about the Hills case. We should have to go gently and slowly at first. President Mobutu agreed. Mr. Callaghan said that he would be ready to send a team of experts to look at the requirements for spares for Saladins and Saracens. He would also consider sending a team to look into the question of the commercial debt. Possibly the Crown Agents would be willing to send somebody out for discussions about their outstanding business. But all this must be done quietly and without fuss. General Amin must stop shouting from the roof tops. President Mobutu said that he accepted this. The State Commissioner would have this point in mind in preparing for Mr. Callaghan's visit. Mr. Callaghan said that he had full confidence in President Mobutu and the State Commissioner but he was bound to express some scepticism about the lasting effect of their interventions with General Amin. It was because General Amin was so changeable in his attitudes that our British traders and other Britons who might go and work in Uganda had become so apprehensive. President Mobutu said that he was confident that this time all would be well. At any rate he would do his best. 6. Mr. Callaghan said that there was another point which he ventured to raise which was the treatment of our Acting High Commissioner in Kampala. General Amin had several times sent for our Acting High Commissioner and had then proceeded to berate him in public in front of TV cameras. The next time that this happened would be the last time because he had decided that if there were any further incidents of this kind he would withdraw the High Commission. President Mobutu said that the State Commissioner would deal with this question also. CONFIDENTIAL