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SECRET 2 -- Deflect the Maltese request for a commitment by the U.S. to guarantee Malta's security. -- Continue to emphasize in diplomatic discussions with Maltese officials our concern about Libyan involvement in international terrorism and the Libyan desire to use Malta as a location to train operatives or for other purposes associated with terrorism. -- Maintain regular contact with leaders of the opposition Labor Party. -- Continue the USIS information effort in order to give the Maltese a clearer picture of U.S. policies and to better expose and counter Soviet and Libyan propaganda and disinformation. (S) Trade and Investment -- Impress upon the Maltese that it is up to them to establish an attractive investment climate; suggest what they might do to improve that climate; explore the possibility of concluding a bilateral investment treaty. -- Call attention of U.S. firms to trade, investment and tourism opportunities in Malta. -- Explore the possibilities of obtaining Trade and Development Board support for projects utilizing U.S. exports, and of initiating programs in coordination i with the President's Private Sector Initiative office. (C) Military/Security Programs -- Request EUCOM survey training needs and initiate an IMET program if circumstances warrant. -- Foster improved performance by the Maltese government in the intelligence/security field and, if warranted, undertake reciprocal cooperation in such areas as counterterrorism. -- Encourage low-profile military-to-military ties between Italy and Malta, including search and rescue training and underwater mine clearing. (S) Round Rogan BECRET -SECRET