PRIME MINISTER
MEETING WITH THE TAOISEACH; FRIDAY 25 SEPTEMBER
You are meeting Mr Reynolds at 12 noon for half an hour of private conversation (with Dermot Nally and me present as notetakers) followed by lunch from 1230 to 1430. The cast list is attached.
Tête-à-tête
In the private meeting Mr Reynolds will want to press the case for a Joint Declaration by the British and Irish Governments leading, as he will argue, to PIRA abandoning the armed struggle. John Hume is talking of coming forward with a new draft. A common feature of all the drafts up to now has been the suggestion that we will work to bring about a united Ireland. You will need to make clear that that is not on (see speaking note in the pack).
Lunch-time Discussion
Over lunch you will need to talk about Anglo/Irish and EC issues.
Anglo/Irish Issues
The meeting is taking place on the understanding that the Irish have agreed and will announce a six week postponement of the Intergovernment Conference. We have suggested Friday 13 or Monday 16 November. Since the next meeting was due to take place some time next week, we cannot technically argue that six weeks takes us beyond Friday 13 November. If you can get the Taoiseach to agree on Monday 16 November well and good.
The brief contains a draft communique which has not, so far as I know, been shown to the Irish.
The main points you will need to cover are
i. The next IGC: Friday 13 or Monday 16 November
ii. Security co-operation.
iii. Confidence issues.
There are flagged speaking notes on all of these.
EC Issues
The main aim here will be to get Mr Reynolds on board for our conception of the special summit on 16 October. You may wish to describe for the Taoiseach the parliamentary difficulties on Maastricht we face and our ideas on making a reality of subsidiarity.
The scene setting telegram from Dublin suggests that the Taoiseach will press for the early return of sterling to the ERM. You will wish to say:
i. There can be no question of our resuming membership until the current tensions within the foreign exchange markets have subsided.
ii. We need a proper review of the whole way in which the ERM works ( intervention rules, co-operation procedures and the obligations the ERM places upon those currencies at the top and the bottom of their ERM bands).
iii. We need the Germans to be in a position where they can bring their interest rates down to levels which are compatible with sustained non-inflationary growth in the UK.
The Taoiseach may also want to know how we propose to handle future financing. You may wish to confirm that it is still our intention to seek an agreement at Edinburgh but that in the present climate of recession there is little appetite for expensive settlements.
Sarah Box
Duty Clerk
pp J.S. Wall
24 September 1992
foreign\taoiseach.mfj
