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GV EXTERIOR British Prime Minster James Callaghan's residence; arrival of General Omar Herrera Torrijos, head of the Panamanian government.
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SV INTERIOR Mr. Callaghan entering room with Torrijos, shaking hands and walking away
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Initials BB/1550



Script is copyright Reuters Limited. All rights reserved

Background: General Omar Herrera Torrijos, head of the Panamanian government, met British Prime Minister James Callaghan in London on Wednesday (12 October), and he was given Britain's full support for the new Panama Canal treaties, which were signed in Washington last month.

SYNOPSIS: London was the last stop on a European tour for General Torrijos.

Britain is one of the main users of the Panama Canal, and Mr. Callaghan believes that the new treaties will help the Panamanian economy, and improve stability in the area. The treaties, which are still to be ratified, were also the main topic at a meeting General Torrijos had earlier with British Foreign Secretary, Dr. David Owen. The Panamanian leader has promised Britain free traffic of shipping, when full sovereignty of the canal passes to his country.