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CONFIDENTIAL The situation is further complicated by the request made to us by the Kenyans to provide military equipment and perhaps more visible support against a possible invasion of Kenya by Uganda. (We have been consulting you separately about this.) There is no question where our interests lie. Quite apart from the important political factors, our investment in and trade with Kenya are many times greater than with Uganda. But Amin would certainly regard our support for Kenya as hostile to him. Our people would already be at risk because of this and any diplomatic retaliation by us over Mrs. Bloch would increase that risk. These considerations apply a fortiori to the ultimate step of breaking diplomatic relations completely. Indeed, the public may not fully understand the difference between this and the "American" option above. This could cause public presentational problems. ^There is some cause for hope in what Amin said to Mr. Hennessy that we shall not be driven to these options. It would in any case be preferable to await Mr. Hennessy1s return and his personal report early next week, (by which time we should have the UN Security Council debate on the Entebbe incident behind us). Meanwhile we are keeping in mind the need for possible consultations among our EEC partners in the margin of the European Council meeting on 12/13 July. It is partly for that reason that I thought you should be made aware now of our thinking. (R. N. Dales)