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??>) 10 DOWNING STREET From (hePrivate Secretary " 2 J u n Q Prime Minister's Meeting with the Australian Prime Minister I have already sent you a copy of the note of the Prime Minister's meeting with Mr. Fraser at Chequers yesterday afternoon, together with a separate letter about the British power plant industry and the possibility of contracts in Australia. You may like to know that, in his private talks with Mr. Fraser before the meeting began, the Prime Minister also discussed Rhodesia, and gave Mr. Praser a general account of the latest developments over the Rhodesia incursions into Mozambique. There was also a discussion about President Carter, during which Mr. Fraser expressed some concern about President Carter's policies. He thought that the emphasis which President Carter was placing on Human Rights would cause the Australians some difficulties with their neighbours.. Mr. Praser also mentioned that the Australians had under- taken a joint study of the military situation in the Pacific, and expressed concern that, if the United States had- to fight a naval war in the Atlantic, they would only, be able, to cover the Pacific as far as Hawaii. Ee wondered what would happen ir such a case to Japan and Australia (although the Prime Minister has commented that he is not clear what scenario Mr. Fraser was envisaging in describing his concern)-. The Prime Minister suggested to Mr. Fraser. thai; he should raise his worries with ' ' President Carter himself. There was also some general conversation about inflation arid unemployment; about President Amin; and about the forthcoming Commonwealth Heads of Government Conference. The private meeting otherwise covered the ground'which--was'later reported by both Prime Minister's to the plenary meeting. I am sending a copy of this letter to Martin Vile (Cabinet Office). p. R. H. WRIGHT _ , ... J.S. Wall, E s q . , ,.., .. ,. . r ^ .rx -,•- --, • --•: 4 >, \ Foreicn and Commonwealth' Offi cv<=>.:" .•. •' •'-.' . •;