THE Foreign Secretary, Mr Douglas Hurd, has assured council leaders in

the Highlands and islands that the Government will take full account of

their case for priority funding status within Europe.

Mr Hurd has, however, stopped short of committing Government support

for the councils in their efforts and believes that it would be

premature for him to meet a deputation of conveners from the three

islands councils and Highland, Strathclyde, and Grampian regional

councils. Strathclyde is involved because its interests in Argyll, and

Grampian because of Moray.

The councils have been waging a long campaign to get the Highlands and

islands returned to priority status, the EC's Objective One category,

which attracts 80% of the money from the structural funds such as the

European Regional Development Fund and the European Social Fund.

Objective One includes Ireland, Greece, and parts of Italy, while the

Highlands and islands sit in Objective 5B along with parts of France and

Germany.

The membership of the different objectives is up for review next year

and the councils, along with Mrs Winnie Ewing, the area's MEP, are

pushing hard for the Highlands and islands' membership of Objective One.

Mr Hurd has written to the councils advising them to keep Scottish

Secretary Ian Lang and the Scottish Office in touch with any work which

is commissioned in support of their argument. He was not sure how far

negotiations on the reform of the structural funds would proceed under

the UK's European presidency.

He wrote: ''The draft regulations have not yet been published by the

Commission and discussion is therefore yet to begin in earnest.

Nevertheless, my UK colleagues, who will be representing the Government

in the negotations, will take full account both of your interests and

those of other UK regions.''

Yesterday the convener of Highland Regional Council, Mr Duncan

McPherson, said that the response was encouraging although he and the

other council conveners would have liked to have won a meeting with Mr

Hurd at this stage.

''Although he has not made any promises in relation to supporting our

case for Objective One status, he does indicate that our interests will

be covered in negotiations.

''I think it will be useful for the six conveners to get together as a

group to discuss the nature and timing of any politicial lobbying of the

Government and the European Commission.''

Earlier this week Highland councillors met Mr David McCarthy, managing

director of Marine Harvest, following last week's announcement that the

comany was paying off 120 in Fort William and 25 at Lochailort. The

company's retail cutting and packing operation in Fort William is to be

closed.