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CONFIDENTIAL Foreign and Commonwealth Office London SW1A 2AH JuJLy 1977 From the Parliamentary Under Secretary of State \ I V^-—— \oA~. NAAFI TRADS'WITH UGANDAN ABMED FORCES David Owen's attention has been drawn to the fact that NAAFI (Kenya) is currently doing business with the Ugandan Army Shop to the tune of some £70,000 a month. As you will know, considerable public concern has been expressed on the question of Britain's trading links with Uganda and we have recently been examining what action we might be able to take in this respect. It has been concluded that, while a general trade embargo against Uganda would not be appropriate, the Government must avoid giving the impression that we are in any way granting aid and comfort to the Ugandan Armed Forces and security apparatus. We are therefore proposing to the Crown Agents that they should voluntarily cease to supply equipment of any kind to these organisations, and the Department of Trade are examining possible means of legally terminating the Uganda Airlines' flights into Stansted. It would appear inconsistent with this action for NAAFI to continue to supply the Ugandan Army Shop, particularly if, as I understand may be the case, HM Government have a decisive say in NAAFI's overall policy through Ministry of Defence representation on its Council. It is therefore David Owen's view that this trade, and the extent and nature of British Governmental association with it, should be urgently examined with a view to reaching an early decision thatbusiness for and on behalf of the Ugandan regime should cease. If such a decision is made, we would wish to consider the desirability of consulting the Kenyan Government before it is put into effect in view of the fact that the trade is conducted through Kenya. John Gilbert Esq MP Minister of State Ministry of Defence Main Building Whitehall LONDON S W 1 CONFIDENTIAL