UNCLASSIFIED SECRET PAGE 01 LONDON 07892 01 OF 04 1010292 ACTION NODS-00 E10 INFO OCT-00 ADS-00 000 W ------------------144141 101032Z 10 0 1010172 APR 82 ZFF-6 FM AMEMBASSY LONDON TO AMEMBASSY BUENOS AIRES IMMEDIATE RELEASED IN FULL INFO SECSTATE WASHDC IMMEDIATE 8891 S E C R E T SECTION 01 OF 04 LONDON 07892 NOD I S DECAPTIONED FOR GOLDBERG FROM STREATOR USDEL SECRETARY E O 12065 RDS-1 4 10 12 STREATOR E J OR-M TAGS UK US XF SUBJECT MEMCON SECRETARY'S MEETING WITH PRIME MINISTER THATCHER APRIL 8 FALKLAND ISLANDS CRISIS SECRET - ENTIRE TEXT THE SECRETARY MET AT 6 00 P M APRIL 8 AT NO 10 DOWNING STREET WITH PRIME MINISTER THATCHER TO DISCUSS THE FALKLAND ISLANDS CRISIS ALSO PRESENT WERE FOREIGN SECRETARY FRANCIS PYM PRIVATE SECRETARY JOHN COLES AND U S CHARGE EDWARD STREATOR 1 THE PRIME MINISTER WELCOMED THE SECRETARY AND THANKED HIM FOR THE APRIL 7 MESSAGE SHE HAD RECEIVED 2 SHE SAID THE U K HAD BEEN HAVING GOOD TALKS WITH ARGENTINA AND WAS EXTREMELY SURPRISED BY THE ACTIONS OF THAT GOVERNMENT NO ONE HAD ANTICIPATED THEM AFTER THE SECRETARY SAID THAT THE U S TOO WAS SURPRISED THE PRIME MINISTER SAID CARRINGTON HAD BEEN IN ISRAEL AND SECRET SECRET PAGE 02 LONDON 07892 01 OF 04 101029Z THUS OUT OF TOUCH THE ONLY HOPE OF STOPPING THE ARGENTINES WAS THROUGH THE PRESIDENT'S GOOD OFFICES SHE WAS MOST GRATEFUL FOR HIS ACTION THE MOOD IN BRITAIN WAS VERY DEEPLY FELT SHE SAID BECAUSE OUR SOVEREIGN UNITED STATES DEPARTMENT OF STATE REVIEW AUTHORITY FRANK H PEREZ DATE CASE ID 02 APR 2009 200703786 UNCLASSIFIED TERRITORY WAS INVOLVED AND WE WERE UNABLE TO DEFEND IT THE DISCUSSION IN PARLIAMENT WAS THE MOST DIFFICULT SHEUNCLASSIFIED HAD SEEN IN 25 YEARS A MAJORITY FELT BRITAIN HAD BEEN HUMILIATED AND HAD BETRAYED THE PEOPLE OF THE FALKLANDS THE DEBATE LEFT NO DOUBT ABOUT THE DEPTH OF FEELING IN THE COUNTRY AS SHE INFORMED THE PRESIDENT SHE HAD DISPATCHED SUBMARINES PUT THE FLEET ON ALERT AND ANNOUNCED IT WOULD SAIL THE DEBATE YESTERDAY HAD BEEN SOMBRE BUT THE GOVERNMENT HAD FULL SUPPORT MOREOVER HOPE HAD BEEN EXPRESSED THAT THE SITUATION COULD BE RESOLVED BY DIPLOMATIC MEANS THERE IS TOTAL DETERMINATION TO USE MILITARY STRENGTH IF NEEDED JOHN NOTT'S SPEECH HAD BEEN GOOD AND HE HAD ANNOUNCED THE EXCLUSION ZONE AROUND THE FALKLANDS BRITAIN HAD NOT PUT A FOOT WRONG IN INTERNATIONAL LAW 3 THE PRIME MINISTER CONTINUED THAT SHE HAD BEEN HEARTENED BY THE SUPPORT FROM ELSEWHERE MITTERAND HAD TELEPHONED AND AGREED TO GET SUPPORT FROM TOGO AND ZAIRE THE KING OF JORDAN HAD SUPPORTED BRITAIN IN THE UN AS WELL SCHMIDT HAD CALLED TO EXPRESS HIS SUPPORT AND HAD SAID THAT UNPROVOKED AGGRESSION IF NOT TURNED BACK COULD LEAD TO PROBLEMS EVERYWHERE WHERE THERE ARE BORDER DISPUTES UNLESS WE STOP THE ARGENTINES FROM SUCCEEDING WE ARE ALL VULNERABLE MULDOON AND FRASER ALSO HAD EXPRESSED SUPPORT AND FRASER HAD CUT OFF ARGENTINE TRADE 4 THE PRIME MINISTER RECALLED THE LENGTHY NEGOTIATIONS WITH ARGENTINA THAT HAD BEEN HELD ON THE BASIS THAT NO NEGOTIATIONS COULD TAKE PLACE UNLESS IT WAS WITH THE SECRET SECRET PAGE 03 LONDON 07892 01 OF 04 1010292 AGREEMENT OF THE ISLANDERS AND NO SCHEME WOULD BE PUT FORWARD THAT WAS UNACCEPTABLE TO THEM 5 THE PRIME MINISTER MADE CLEAR HER VIEW THAT IT WAS IMPOSSIBLE TO BE NEUTRAL IN THE FACE OF UNPROVOKED AGGRESSION IN REVIEWING THE BIDDING SHE SAID THE FLEET WAS EN ROUTE AN EXCLUSION ZONE HAS BEEN ESTABLISHED AND BRITAIN HOPES FOR A DIPLOMATIC SOLUTION HOWEVER THERE COULD BE NO NEGOTIATIONS UNLESS ARGENTINA LEAVES THE ISLANDS UNPROVOKED AGGRESSION DOES NOT CHANGE LEGAL STATUS SHE SAID BRITAIN SOUGHT TO RESTORE BRITISH ADMINISTRATION TO THE FALKLANDS AND CANNOT NEGOTIATE UNDER DURESS AND WITHOUT THE PARTICIPATION OF THE ISLANDERS SHE NOTED THAT CONCERN HAD BEEN STIRRED BY THE PRESIDENT'S OFF THE CUFF REMARKS ABOUT NOT TAKING SIDES SH SAID UNCLASSIFIED SHE UNDERSTOOD IT WAS OFF THE CUFF @MI SME ILY CONCEIVED REMARK AT THE SAME TIME SHE EXPRESSED APPRECIATION FOR U S COOPERATION IN INTELLIGENCE MATTERS AND IN THE USE OF ASCENSION ISLAND 6 THE SECRETARY SAID THAT HE WAS CERTAIN THE PRIME MINISTER KNEW WHERE THE PRESIDENT STOOD WE ARE NOT IMPARTIAL CERTAINLY WE WERE NOT IMPARTIAL ON THE UN RESOLUTION AND THE PRESIDENT WAS NOT IMPARTIAL IN HIS TELEPHONE CALL TO GALTIERI HE SAID HE DID NOT NEED TO ELABORATE HIS FEELINGS TOWARDS THE PRIME MINISTER THE SPECIAL FRIENDSHIP OF THE PRIME MINISTER OVER FIFTEEN MONTHS WAS DEEPLY APPRECIATED THERE IS NO ISSUE ON WHICH THE PRIME MINISTER HAD NOT BACKED THE U S 7 THE SECRETARY SAID THAT WE FACE A CRITICAL COMMON PROBLEM WE MUST DO ALL WE CAN TO STRENGTHEN YOU AND YOUR GOVERNMENT 8 HAVING ANALYZED THE SITUATION VERY CAREFULLY THE SECRETARY SAID HE THOUGHT THERE HAD BEEN AN INTELLIGENCE SECRET SECRET PAGE 04 LONDON 07892 01 OF 04 1010292 FAILURE THE ONLY INFORMATION AVAILABLE WAS ABOUT SUBUNCLASSIFIED UNCLASSIFIED SECRET NNN SECRET PAGE 01 LONDON 07892 02 OF 04 101031Z ACTION NODS-00 INFO OCT-00 ADS-00 000 W ------------------144171 101035Z 10 0 1010172 APR 82 ZFF-6 FM AMEMBASSY LONDON TO AMEMBASSY BUENOS AIRES IMMEDIATE INFO SECSTATE WASHDC IMMEDIATE 8892 S E C R E T SECTION 02 OF 04 LONDON 07892 NOD I S MARINE RECONNAISSANCE BY THE ARGENTINES WHEN HENDERSON HAD PROVIDED SENSITIVE INTELLIGENCE HE CONCLUDED THAT THERE HAD BEEN A FAILURE OF CONCENTRATION RATHER THAN MANAGEMENT THE SECRETARY ALSO SAID THAT DELAYS HAD BEEN MANIPULATED IN BUENOS AIRES FOR EXAMPLE THE ARGENTINES HAD STONEWALLED ON THE ISSUE OF SOVEREIGNTY MOREOVER THE PRESIDENT HAD BEEN KEPT WAITING TO SPEAK TO GALTIERI WHO USED THE SAME TALKING POINTS EARLIER DEPLOYED IN THE SECRETARY'S VIEW THE OPERATION HAD BEEN PLANNED FOR MONTHS UNCLASSIFIED UNCLASSIFIED 9 THE SECRETARY SAID WE WERE WATCHING THE ARGENTINE SITUATION CLOSELY - THE ARGENTINES HAD BEEN ARROGANTLY CONFIDENT THAT THE U K WOULD NOT BE ABLE TO CHALLENGE THE INVASION AND THUS THEY WERE NOT DETERRED THE SECRETARY ALSO REFERRED TO HIS CONCERN THAT THE SOVIETS WERE BEGINNING TO POSITION THEMSELVES FOR MISCHIEF AT THE SAME TIME HE SAID THAT THE INCUMBENT PRESIDENT IS IN SOME JEOPARDY AND WOULD BE FOLLOWED BY SOMEONE MORE INTRANSIGENT IF HE FELL THE FOREIGN MINISTER HAD TOLD THE SECRETARY THAT EVERYTHING WAS NEGOTIABLE THE SECRETARY HAD RESPONDED THAT HE WOULD NOT GO TO BUENOS AIRES IF HE SECRET SECRET PAGE 02 LONDON 07892 02 OF 04 101031Z WERE GOING TO BE TOLD THE SAME THINGS AS PREVIOUSLY THE FOREIGN MINISTER HAD MADE IT CLEAR HE WANTED THE SECRETARY TO COME THE SECRETARY SAID WE WOULD NOT ACCEPT A CHANGE IN STATUS QUO BY FORCE HE UNDERLINED THAT THE DEMEANOR OF THE ARGENTINES WAS DIFFERENT FROM THAT OF ANGLO-SAXONS THESE ARE PEOPLE WHOSE WHOLE ETHOS AND HISTORY ARE LESS THAN RATIONAL AT THE SAMETIME THE SECRETARY CONTINUED WE HAVE A WINDOW NOW WE BELIEVE WHEN THE BRITISH FLEET REACHES THE 50TH PARALLEL IT WILL BECOME AN EMOTIONAL ISSUE AND PROGRESS THEREAFTER WILL BE DIFFICULT SIMILARLY THE OAS WITH ITS THIRD WORLD PROBLEMS WILL NOT BE OBJECTIVE WHEN IT MEETS AND ULTIMATELY WILL FORM AN ANTI-COLONIALIST CONSENSUS THE SECRETARY RECALLED THAT THE ARGENTINE FOREIGN MINISTER HAD SAID HE HAD TWO OPTIONS THE OAS AND THE SOVIET UNION AND WOULD USE THEM WHILE HE DIDN'T WANT TO OVERDRAMATIZE THE ARGENTINES WOULD BE STRENGTHENED IN THEIR MACHO BY THE OAS EVEN IN THE'U K HE SAID THE SITUATION WILL BECOME MORE DIFFICULT WITH HEAVY EXPENDITURES OF RESOURCES 10 THE SECRETARY SAID HE VIEWED THE NEXT 72 HOURS AS VERY IMPORTANT IN ARGENTINA WHILE WE NEED TO DEMAND WITHDRAWAL AND ACHIEVE IT WE NEED TO DO IT BY MONDAY LONDON WAS CHOSEN TO VISIT FIRST BECAUSE THE BRITISH ARE OUR CLOSEST FRIENDS AND ALLIES AND WE WISHED TO START DISCUSSIONS WITH THEM IT WAS POINTLESS TO GO TO BUENOS AIRES FIRST AND LISTEN TO MACHO RHETORIC WITHOUT A FUNDAMENTAL FEEL FOR BRITAIN'S LIMITS AND THE SECRETARY SAID HE WANTED TO BE ABLE TO SAY HOW STRONG UNCLASSIFIED U K VIEWS ARE HE HOPED TO BE ABLE TO FORCE A WITHDRAWAL HE ADDED WE AGREE WITH WHAT YOU ARE DOING SECRET SECRET PAGE 03 LONDON 07892 02 OF 04 101031Z UNCLASSIFIED 11 THE PRIME MINISTER SAID THAT THE CURRENT EFFORT WAS MORE IMPORTANT THAN US WE ARE ROLLING BACK THE TIDE OF SOCIALISM SHE SAID MOREOVER OUR SUCCESS WILL BE IMPORTANT TO FRANCE LATIN AMERICA AND THE CARIBBEAN SHE RECALLED THAT BRITAIN HAD HAD EXPERIENCE WITH APPEASEMENT AND NOTIONS OF PEACE WITH HONOR IT COMES TO A POINT SHE SAID WHERE ONE CANNOT COMPROMISE THE SOVIETS WERE AFRAID OF THE U S GETTING INVOLVED AS IT IS THEY ARE STRETCHED AND SHE WOULD BE SURPRISED IF THEY GOT INVOLVED 12 THE SECRETARY SAID THAT HE DID NOT FEAR A MAJOR INVOLVEMENT BUT IF THE BRITISH CARRIED OUT A MILITARY ACTION HE COULD ENVISAGE SOVIET MILITARY INVOLVEMENT HE FORESAW THAT THE BRITISH COULD SUCCEED IN MILITARY TERMS IN A LIMITED WAY HOWEVER THE ARGENTINES WOULD GO INTO PORT AND LAND-BASED AIR WOULD BECOME A PROBLEM THE PRIME MINISTER SAID THAT HER GOVERNMENT WAS CORRECT AND LAW-ABIDING AND NEEDED TO GIVE TIMELY NOTICE ON THE EXCLUSION ZONE SHE RECALLED THAT THE WHOLE ARGENTINE EFFORT WAS MINUTELY PLANNED DOWN TO GETTING THE NAMES OF ALL THE BRITISH MARINES SHE RECALLED THAT THE ARGENTINES KNEW THE NAMES OF THE FIVE MISSING MARINES DOUBTLESS THE 20 ARGENTINES ON THE ISLAND WERE INVOLVED IT WAS AMAZING THERE HAD BEEN NO INTELLIGENCE ON THEIR ACTIVITIES THE ARGENTINE COMMANDER ON THE ISLAND HAD SAID THE U K WILL DO NOTHING WE HAD TRIED TO NEGOTIATE IN A CIVILIZED WAY CLEARLY THERE WAS A DIFFERENCE OF VIEW BETWEEN THE POLITICIANS AND THE MILITARY IN ARGENTINA HOWEVER WE WERE LOOKING AT CONSTRUCTIVE PROPOSALS IN OUR NEGOTIATIONS IN NEW'YORK WHICH WERE FRIENDLY PYM SUGGESTED THAT THE ARGENTINES HAD BEEN CARRIED AWAY IN A MACHO WAY GALTIERI HAD SECRET UNCLASSIFIED UNCLASSIFIED NNN SECRET PAGE 01 LONDON 07892 03 OF 04 101033Z ACTION NODS-00 INFO OCT-00 ADS-00 000 W ------------------144230 1010392 10 O 1010172 APR 82 ZFF-6 FM AMEMBASSY LONDON TO AMEMBASSY BUENOS AIRES IMMEDIATE INFO SECSTATE WASHDC IMMEDIATE 8893 S E C R E T SECTION 03 OF 04 LONDON 07892 NODIS TAKEN CARE OF HIS PREDECESSOR BUT APPARENTLY HE WAS LESS TOUGH THAN THE NAVY CHIEFS 13 THE SECRETARY ASKED WHAT PRESSURES BRITAIN COULD BRING TO BEAR NOTING THAT EUROPE KNOWS THAT THE REPUTATION OF THE WEST IS AT STAKE THE U S HAD STOPPED MILITARY EXPORTS THE PRIME MINISTER RESPONDED THAT THE ARGENTINES CAN FEED THEMSELVES HOWEVER THEY HAVE NO CREDIT WORTHINESS LEFT IT WILL BE DIFFICULT FOR THEM TO BORROW MORE ON THE EURO DOLLAR MARKET THEY MISCALCULATED IN HER VIEW AND SHE SAID SHE WANTED TO SOLVE THE PROBLEM BY DEMOCRATIC MEANS TO DATE BRITAIN WAS GETTING A LOT OF HELP BECAUSE MOST REALIZED THAT THE WEST IS ON TRIAL 14 IN RESPONSE TO THE PRIME MINISTER'S QUESTIONS ABOUT GALTIERI THE SECRETARY SAID HE IS REPUTED TO BE A RELIGIOUS MAN AND SOMETHING OF A DRINKER HE HAD A REPUTATION AS WELL FOR BEING A TOUGH GUY AND A POKER PLAYER THAT IS WHY THERE MAY BE A WINDOW NOW HE WILL UP THE ANTE IF FORCED AND HE WILL CONTINUE THE STRUGGLE EVEN IF HE WON'T SURVIVE HIS FLEET CAN BE DAMAGED SEVERELY AND THE ISLANDS PUT IN A COCOON BUT LANDING ON THE BIG ISLAND WOULD BE VERY COSTLY AND IT WILL SECRET UNCLASSIFIED UNCLASSIFIED SECRET PAGE 02 LONDON 07892 03 OF 04 1010332 PUT THE POPULATION IN JEOPARDY IN THE FINAL ANALYSIS ONCE ENGAGEMENT STARTS IT WILL BECOME AN INCREASINGLY DIFFICULT BURDEN TO PROTICT PRINCIPLE PEOPLE WILL BEGIN TO ASK QUESTIONS LIKE WHY THEY ARE MAKING SUCH A SACRIFICE FOR A THOUSAND SHEEP HERDERS U S OPINION NOW SUPPORTS THE PRINCIPLED POSITION BRITAIN HAS TAKEN BUT WE CANNOT BE SURE IT WILL LAST TOO LONG IF THE ISSUE IS NOT SETTLED 15 THE PRIME MINISTER SAID THERE IS NO BORDER IN THE FALKLANDS THE SITUATION IS MORE LIKE MALAYSIA THAN VIETNAM 16 THE SECRETARY SAID HE WANTED TO FIND SOME APPROACH THAT PROTECTED PRINCIPLE AND ACHIEVED A SUCCESS BEFORE THERE IS A BACKLASH SO THAT THE THATCHER GOVERNMENT WILL BE STRENGTHENED AND WE WILL ALL COME OUT BETTER THE PRIME MINISTER EMPHASIZED THAT THIS COULD HAPPEN AFTER WITHDRAWAL SHE NOTED THAT THE ISLANDS ARE SHORT OF WATER COLD AND THAT THERE IS NOTHING BUT SHEEP TO EAT THE SECRETARY SAID THE HOPE WAS TO WORK FOR WITHDRAWAL IN SUCH A WAY THAT GALTIERI IS NOT TOPPLED AND REPLACED BY SOMEONE MORE RIGID HE EMPHASIZED WITHDRAWAL OF MILITARY AND SECURITY RELATED FORCES TO GET THAT STEP HE THOUGHT THE ARGENTINES NEED TO BE CONVINCED THAT THEY ARE NOT LOSING FACE IN THE PROCESS AT THE SAME TIME THERE MUST BE A VICTORY FOR PRINCIPLE THE PRIME MINISTER THOUGHT THESE APPROACHES CONTRADICTORY 17 THE SECRETARY OUTLINED A THREE-STEP APPROACH INVOLVING WITHDRAWAL OF FORCES RESTORATION OF ADMINISTRATION AND NEGOTIATIONS ON NEXT STEPS THE TOPIC OF SOVEREIGNTY WOULD ARISE THE PRIME MINISTER SE CRE T SECRET PAGE 03 LONDON 07892 03 OF 04 101033Z EMPHASIZED THAT THE U K IS SOVEREIGN THE PEOPLE WERE FREE BEFORE AND CLEARLY GAVE ALLEGIANCE TO THE CROWN UNDER LAW THE SECRETARY SAW THE NEED TO AVOID A PRIORI JUDGEMENTS IT WAS NECESSARY TO GO BACK TO NEGOTIATIONS THE PRIME MINISTER SAID THIS WAS VERY DANGEROUS GROUND WITH PUBLIC OPINION BRITISH ADMINISTRAUNCLASSIFIED TION MUST BE RESTORED WE CANNOT AGREE A DICTATOR CAN CHANGE THAT BRITAIN NEGOTIATED POLITELY THUNCLASSIFIED ARGENTINES ARE NEO-IMPERIALISTS AND FORCE MUST BE WITHDRAWN AND PRESSURE MUST BE APPLIED TO THAT END AFTER WITHDRAWAL WE COULD TAKE UP WHERE WE LEFT OFF THE SECRETARY SAID THAT IF BRITAIN WENT THAT ROUTE FORCE WILL BE REQUIRED AND THERE WILL BE WAR THE PRIME MINISTER REPLIED THAT IT WILL BE A GREAT TRAGEDY IF FORCE IS REQUIRED BRITAIN IS WORRIED ABOUT ITS PEOPLE'THERE 18 THE SECRETARY SAID THAT IF THE FUTURE FREEDOM OF CHOICE CAN BE ASSURED AND IF THE FORCES ARE WITHDRAWAN AS A FIRST STEP AND IF CHANGE IN LOCAL AUTHORITY IS BROUGHT ABOUT IMMEDIATELY SOME PROGRESS MIGHT BE POSSIBLE THE PRIME MINISTER SAID SHE WOULD NOT NEGOTIATE UNDER DURESS SHE WAS UNABLE EVEN TO HAVE ACCESS TO THE FALKLANDERS NOW SHE WAS PLEDGED TO THE HOUSE OF COMMONS AS ARE THE FOREIGN SECRETARY AND JOHN NOTT THE SECRETARY SAID HE WAS NOT SUGGESTING NEGOTIATING UNDER DURESS HE HAD IN MIND THE RETURN OF THE BRITISH PRESENCE IN ADDITION HE ENVISAGED A U S AND CANADIAN PRESENCE THE PRIME MINISTER SAID SHE WAS PLEDGED TO RESTORE BRITISH ADMINISTRATION AND TO EFFECTIVE RESTORATION OF SOVEREIGNTY SHE BELIEVED THE SECRETARY'S PROPOSAL VIOLATED THESE PRINCIPLES THE SECRETARY SAID HE SAW WITHDRAWAL OF THE ARGENTINE FORCES AND THE SUBSEQUENT APPLICATION-OF A TEMPORARY ARRANGEMENT THATCHER INSISTED THE PEOPLE HAVE A RIGHT TO STAY IN THE ISLANDS THE SECRETARY REPLIED THAT WAS WHAT HE SECRET SECRET PAGE 04 LONDON 07892 03 OF 04 101033Z WAS SEEKING TO ACHIEVE IN CONFORMITY WITH THE UN CHARTER UNCLASSIFIED UNCLASSIFIED SECRET NNN SE CRE T PAGE 01 LONDON 07892 04 OF 04 1010342 ACTION NODS-00 INFO OCT-00 ADS-00 000 W_ ------------------144252 1010412 10 O 101017Z APR 82 ZFF-6 FM AMEMBASSY LONDON TO AMEMBASSY BUENOS AIRES IMMEDIATE INFO SECSTATE WASHDC IMMEDIATE 8894 S E C R E T SECTION 04 OF 04 LONDON 07892 NODIS THE PRIME MINISTER SAID RIGHTS UNDER THE CHARTER WERE UNCLASSIFIED REMOVED BY FORCE SHE INDICATED THE SECRETARY WAS UNCLASSIFIED SUGGESTING THE ARGENTINES GET BY FORCE WHAT THEY FAILED TO GET BEFORE THE SECRETARY SAID HIS INTENTION WAS TO ACHIEVE WITHDRAWAL OF THE FORCE RESTORATION OF AN ADMINISTRATION THAT COULD GUARANTEE THE FREEDOM OF THE PEOPLE WHILE NEGOTIATIONS GO ON THE PRIME MINISTER SAID THE PEOPLE HAD EVERYTHING THEY WANTED BEFORE SHE SOUGHT WITHDRAWAL AND RESTORATION OF BRITISH ADMINISTRATION -- WHICH MERGED WITH SOVEREIGNTY THEN THERE COULD BE NEGOTIATIONS AS A GUARDIAN OF THEIR RIGHTS SHE CANNOT PUT UP SOMETHING THESE PEOPLE TURNED DOWN SHE SAID PYM SAID PRESERVING THE RIGHT OF SELFDETERMINATION WAS INVOLVED THE SECRETARY SAID ONE MUST FIND A WAY ON THE ISSUE OF ADMINISTRATION IF WE INSIST ON WITHDRAWAL AND GO BACK TO THE STATUS QUO ANTE THE CONSEQUENCES WILL BE CONFLICT THE PRIME MINISTER -SAID THAT THIS APPROACH WOULD MEAN THE VENEZUELANS CAN GO INTO GUYANA THE SOVIETS INTO BERLIN AND THE ARGENTINES INTO CHILE IS THAT THE MESSAGE WE WANT TO GIVE THE WORLD SHE ASKED THE SECRETARY SAID PRINCIPLES WOULD BE PRESERVED BUT THE ONLY WAY TO GET THE PROBLEM TURNED AROUND IN THE SHORT TERM IS TO ACHIEVE AN INTERIM ARRANGEMENT ON AUTHORITY IN THE SECRET SECRET PAGE 02 LONDON 07892 04 OF 04 1010342 ISLAND 19 PYM ASKED IF THE SECRETARY ENVISAGED A RETURN TO U K ADMINISTRATION AND THE PRIME MINISTER SAID THAT ISSUE COULD NOT BE PUT IN JEOPARDY SHE ADDED THAT SHE NEEDED TO DEMONSTRATE THAT SHE WAS NOT OPERATING UNDER DURESS AT THE INTERIM STAGE THE SECRETARY RECALLED THAT THE PROCESS PREVIOUSLY UNDERWAY INCLUDED PROPOSALS FOR LEASING THAT WOULD HAVE BEEN A DIRECT CONCESSION OF SOVEREIGNTY THE PRIME MINISTER RECALLED THAT LEASING HAD NEVER BEEN PROPOSED TO THE ARGENTINES THE SECRETARY SAID THAT IT HAD BEEN WIDELY DISCUSSED AND ALL WERE AWARE OF IT THE SECRETARY ASKED WHAT HAPPENED IF WE DON'T FIND A SOLUTION AND CONFLICT DEVELOPS THE PRIME MINISTER SAID IT HAD DEVELOPED AND WAS INITIATED BY THE ARGENTINES THE FIRST PRINCIPLE OF AMERICA SHE SAID IS THE RIGHT TO USE FORCE TO RECOVER YOUR OWN HOME ONCE BRITISH ADMINISTRATION IS RESTORED OF COURSE BRITAIN WILL NEGOTIATE THE ARGENTINES FLOUTED EVERY CANON OF LAW OUR FRIENDS AGREE SHE DID NOT WANT A UNCLASSIFIED SHOT TO 13E FIRED BUT SHE COULD NOT TOLERATE THEIR GETTING BY FORCE WHAT THEY FAILED TO GET OTHERWISE 20 THE MEETING ADJOURNED FOR DINNER STREATOR UNCLASSIFIED SECRET NNN UNCLASSIFIED