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IV 1O DOWNING STREET From the Private Secretary 12Julyl976 UGANDA As you know, the Foreign and Commonwealth Secretary called on the Prime Minister at about 1730 this evening following his discussions in the Foreign and Commonwealth Office about policy towards Uganda. After a report on the latest developments, including President Amin's press conference this morning, the Foreign and Commonwealth Secretary said that he was convinced that a policy of keeping cool was the right one rather than escalating the situation. The sole issue was what action President Amin would take towards the remaining British residents in Uganda, and although others had argued that we should take a tougher line, e.g. by breaking diplomatic relations immediately, he did not find these arguments convincing. Mr. Crosland agreed that it was necessary to have contingency plans in case President Amin stepped up his threats against the British community, including a rupture of diplomatic relations, instructions to British citizens to leave Uganda, economic sanctions and the possibility of a personal telephone call from the Prime Minister to President Amin. In the longer term, Mr. Crosland thought that we must try to disengage from Uganda. In terms of the total British community, we had already done this to some extent and the number of British residents in Uganda had declined over the past four years from about 7,000 to 500. There had not however been much disengagement in terms of business interests. He had therefore concluded that we should play it cool in the short term, trying to disengage in the longer term. Only then would it be right to think in terms of closing the High Commission in Kampala. /On the question