Page:Ford, British Foreign Minister James Callaghan - September 24, 1974(Gerald Ford Library)(1552801).pdf/3

 He is a bit embarrassed by the Soviet support he's getting.

He's not a Communist, but he is able to use them.

He is a Byzantine.

Is he that skillful?

Yes. Only he could have held Cyprus todather [sic] 14 years.

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?

No, not entirely. It has strategic value in the Eastern Mediterranean.

How is the election going?

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.

That is growing in this country, one way or another.

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.

It still is an issue of principle here.

It was with us in '47, but not even the doctors object now.

The AMA is opposed; there is a formidable opposition.

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