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CONFIDENTIAL GOVERNMENT, VIE HAVE COME TO THE CONCLUSION THAT IT I S IMPOSSH TO HAVE A NORMAL RELATIONSHIP WITH THE PRESENT GOVERNMENT OF UGAH. AHD THAT IT IS IMPOSSIBLE FOR THE HIGH COMMISSION TO FULFIL ITS ( ~ ; PROPER FUNCTIONS. 4 , THE DECISION I S , HOWEVER, ALSO A CULMINATION OF EVEHTS IN UGANDA SINCE PRESIDENT AMIN CAME TO POWER. FOLLOWING HIS DECLARATION OF ECONOMIC WAR-IN 1 9 7 2 , UGANDA HAS TAKEN A SERIES OF ACTIONS HOSTILE TO OUR INTERESTS, INCLUDING .THE EXPULSION OF THE ASIANS, THE EXPROPRIATION OF BRITISH COMPANIES AND TEA PLANTATIONS IN 1 9 7 2 , TWO THREATS TO EXPEL THE ENTIRE BRITISH COMMUNITY, THE REDUCTION TO FIVE OF THE NUMBERS OF THE HIGH COMMISSION'S UK-BASED STAFF IN 1 9 7 ^ , AND THE ATTEMPTED BLACKMAIL OVER MR DENIS HILLS IN 1975T VIE HAVE GIVEN THE UGANDANS EVERY CHANCE IN. THE PAST TWELVE MONTHS TO SHOW GENUINE WILLINGNESS TO FULFIL THEIR INTENTION OF TURNING OVER A NEW LEAF AFTER MR CALLAGHAN'S VISIT THERE, BUT THE OUTSTANDING PROBLEMS BETWEEN US HAVE NOT CHANGED AND THE BLOCH CASE AND THE RECENT DEPORTATIONS ARE A CLEAR BREACH OF PRESIDENT AMIN'S UNDER- TAKING TO MR CALLAGHAN THAT THE BRITONS IN UGANDA COULD LIVE IN SAFETY, PARLIAMENTARY AND PUBLIC INDIGNATION OVER THESE EVENTS HAS • BEEN INTENSE. - • . 5 . OUR COMMUNITY IN UGANDA HAS BEEN OUR FIRST CONCERN THROUGHOUT, IFF MAY OF THIS YEAR, IT NUMBERED ABOUT 5 5 0 . WE HAVE BEEN ADVISING THEM SINCE THE BLOCH AFFAIR TO CONSIDER URGENTLY WHETHER THEY SHOULD LEAVE, POINTING OUT THAT THEY COULD NOT COUNT ON THE CONTINUED PRESENCE OF THE HIGH COMMISSION IN KAMPALA, THERE WILL BE A HARD CORE OF BRITONS LEFT, MOST OF THEM MISSIONARIES WHO HAVE SERVED UGANDA SELFLESSLY FOR MANY YEARS, THE FRENCH EMBASSY AND OUR RESIDUAL STAFF WILL DO THEIR BEST TO PROTECT THEM, 6 . SO FAR AS WE ARE CONCERNED, THIS IS PURELY A BILATERAL AFFAIR AND HAS NOTHING TO DO WITH CURRENT KENYA/UGANDA RELATIONS. THERE IS NO INTENTION IN OUR ACTION OF SLIGHTING AFRICA OR THE COMMONWEALTH, IT DOES NOT INDICATE ANY CHANGE IN OUR ATTITUDE TOWARDS THE ISRAELI RAID ON ENTEBBE. WE SHALL CONTINUE TO CO-OPERATE IN AFRICA AND OUR AID PROGRAMMES WILL REMAIN UNCHANGED, WE DO MOT INTEND TO URGE OUR COMMUNITY PARTNERS TO ALTER THEIR POLICIES TOWARDS UGANDA UNDER EITHER THE LOME CONVENTION OF THE EUROPEAN DEVELOPMENT FUND, . \ 7 , YOU SHOULD DISCOURAGE SPECULATION ON THE EFFECTS OF THIS \ DECISION ORT THE COMMONWEALTH HEADS OF GOVERNMENT MEETING IM LOHDOH ~ 2 - / IH JTJUE 1977,