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( CONFIDENTIAL i IMMEDIATE 6RS 2 0 0 CYPHER CAT A R'l KAMPALA 180710Z CONFIDENTIAL TO IMMEDIATE FCO TELNG 134 OF 18 TH APRIL REPEATED FOR INFORMATION 15 NAIROBI. YOUR TELNO 7 ? ; COMPENSATION. 1. I HAVE ASKED AGAIN TO SEE PRESIDENT, BUT HE IS SAID TO BE N A MEETING, 2 . I HAVE ALREADY POINTED OUT TO OSEKU THAT THE PRIME MINISTERS MESSAGE WAS MUCH MORE FORTHCOMING THAN THE REUTERS REPORT OF I T — AND IN ANY CASE NO SUBSTITUTE 3 . EUT IN THE ABSENCE OF ANY COUNTER PROPOSAL ON LINES SUGGESTED N PARA 3 OF MY TELNO 133 I AM NOT OPTIMISTIC ABOUT CHANCES OF AIY CHANGE OF HEART . PRESIDENT IS LIKELY TO STAND ON THE FACT THAT HIS INVITATION WAS REJECTED AND NO ALTERNATIVE PROPOSAL MADE. 4 . I F RETALIATORY ACTION HAS TO BE TAKEN (YOUR PARA 3 ) A MORE EFFECTIVE LEVER SO FAR AS UGANDANS ARE CONCERNED MIGHT BE THREAT $ TAKE ACI/cw'AT I M F OR U N - POSSIBLY EVEN AT COMMONWEALTH ffiADS OF GOVERNMENT MEETING. BUT I SUGGEST WE FIRST SEE WHETHER THERE IS ANY POSSIBILITY OF PROGRESS HERE AFTER TEMPERS fAVE COOLED - BEFORE CASTING THE D I E . HENNESSY DEPARTMENTAL DISTRIBUTION BAD CLAIMS DEPT NEWS DBPT GIPD PRD FINANCE DEP'f POD PSD CONSULAR DEFT [COPIES SENT TO NO.10 DOWNING STREET] CONFIDENTIAL