Ramsbotham: He is a bit embarrassed by the Soviet support he's getting.
Callaghan: He's not a Communist, but he is able to use them.
Ramsbotham: He is a Byzantine.
President: Is he that skillful?
Ramsbotham: Yes. Only he could have held Cyprus todather 14 years.
Callaghan: But he has blind spots. He can't see the Turks' case -- and they have one. If he had let the constitution work... I think Cyprus's chief military value is to deny it to others, isn't it?
Scowcroft: No, not entirely. It has strategic value in the Eastern Mediterranean.
President: How is the election going?
Callaghan: Too good. We are 12 points ahead. That is too good. We hope to get back to 4-5 points, then the people will turn out.
We have a list of the important issues. Ted Heath made as his first point "Who will govern?" and is pushing for a government of national unity. The issues are prices, housing, pensions. The Common Market is Number 9 or 10; the health services are coming up.
President: That is growing in this country, one way or another.
Callaghan: The only problem is that people don't like the deduction from their pay packet. But we think it worth fighting -- that this is the way to go on health and pensions.
President: It still is an issue of principle here.
Callaghan: It was with us in '47, but not even the doctors object now.
President: The AMA is opposed; there is a formidable opposition.
Callaghan: One point to me on inflation. We are watching your activities closely. As an outsider, let me say: Your people will be telling you of the consequences of your actions in the U.S. They won't tell you of the indirect
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