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CONFIDENTIAL FROM PRESIDENT AMIH THAT HE WISHED TO HAVE GOOD RELATIONS WITH i. US AilD THAT HE WOULD SETTLE WITH OUR HIGH COKM.ISSIOMER til A QUIET HANUER AMY PROBLEMS AFFECTING BRITISH CITIZENS/ THESE RECENT EVENTS AM), ABOVE ALL, THE CONTINUING EVIDENCE OF HIS UNP'REDICT- ABILITY HAVE SHOWN THAT WE CANNOT RELY ON HIS ASSURANCES, • PARLIAMENTARY AMD PUBLIC INDIGNATION HERE HAS BEEM INTENSE AMD V*£ HAVE BEEN FORCED TO CONCLUDE THAT WE CANNOT MAINTAIN A NORMAL RELATIONSHIP WITH THE PRESENT GOVERNMENT OF UGANDA AND THAT OUR HIGH COMMISSION Itt UGANDA CAN HO LONGER PERFORM ITS PROPER FUNCTIONS. WE SHALL, ACCORDINGLY, ON 28 JULY BE ANNOUNCING THAT VIE ARE BREAKING RELATIONS WITH UGANDA, I VIISH TO ASSURE YOU THAT, SO FAR AS WE ARE CONCERNED, THIS IS PURELY A BILATERAL AFFAIR? I THOUGHT, HOWEVER, THAT I SHOULD LET YOU KNOW WHAT WE INTEND, I MUST ASK YOU TO TREAT THIS AS FOR YOUR OWN VERY PERSONAL AND CONFIDENTIAL INFORMATION. 1 REMEMBER WITH GREAT PLEASURE OUR DISCUSSIONS'DURING THE STATE V I S I T LAST YEAR AND I SHALL LOOK FORWARD TO EXCHANGING VIEWS WITH YOU ABOUT AFRICAN PROBLEMS FROM TIME TO TIME, WITH WARM REGARDS. JAMES CALLAGHAM, ENDS. . . . CROSLAND /COPIES SENT TO MO 10 DOWN IMG STREET/ DEPARTMENTAL DISTRIBUTION EAO POD PPD • PSO CONS D COM3 EN UNIT SECURITY D FINANCE D ASD COD P & CD WED CCD DEFENCE D . NEY/S 0 . GIRO N AM D EID (E) ' OADS • RES D (AM SECT) • ' • . (WE SECT) CAD CABINET OFFICE *""" di **"• COriF! DENT LAL