§ Mr. Soamesasked the Secretary of State for Foreign and Commonwealth Affairs what is his current assessment of the effects of the Iran-Iraq war on British interests.
§ Mr. LuceWe are neutral in the conflict and have supplied no lethal items to either side since it began. This policy has meant the loss of some export opportunities in the defence field, while the economic effects of the conflict have limited Iran and Iraq's civil imports, including those from the United Kingdom. If fighting were to spread, the damage to friendly countries in the Gulf and 27W thus to British interests could be serious. We therefore take every opportunity of encouraging an early negotiated settlement.