6/14

COMPIDEMEIAL

Mr. Sailer

Heng Kery

Dept.

A.

Steppent

United Kingdom Delegation to the

European Communition,

28 rue Joseph II, DRUSDELS 4.

10 October, 1969.

to it.

2.

UNGRAD Preferencon

Thank you for your latter of 8 October sad the enclosures

To deal firct with the two questions you raise:

(1) I can find no mupport at all for the suggestion that the Council of Ministers on 17/18 October will be asked to decide whether the Community should implement their proforoncos in concert with other uropean donors, if the Americans prove unable to clarify their position. Tho Commercial Counsellor in the Gorman Permanent Reproponta- tion has assured me that there is no question of a decision boing taken by the Community at this stage on implementation. All that will be cottlod by the Council next week (and ho caid that the Commission proposal, incorporating certain charges made by the Committee of Formaneat Representatives on 9 October, would almost certainly be adopted without dobate) wao that the Corrunity diould go ahead and table ito illustrative offer by 15 Rovenbor whether or not anyone else did so. I imagine that como Commission officials may have been talking about European implementation in order to try to make the Americans' flesh creep but I doubt whether it adds up to more than that at the moment.

(11) As to the Community's intentiona on non-cotton textilen there are at propont no spoɑific indications. But, an yàu imow, the Community taôtio lo that they will not modify their offers formally at the procent stage in any way; but will simply cover themselves by putting in a reserve on burden sharing which would justify any subse- quent cutting dow. Indeed it has now apparently boon decided that the three reservos reported in UKDEL E.E.C. Tol. No. 211 will not be stated as such but that only the first of them will appear in the communication to UIICTAD. It bao boen decided that the first roservo satisfactorily covers the pocond (textile) roservo as woll and that the third has already been made olsovhoro. But it was perhaps significant that the toxt of the second resorvo, 25 submitted by the Commission to the Council, referred not

0. li. Kemmio, Esq.,

Board of Trade,

1 Victoria St.,

London, 9.W. 1.

/to

YN 14 OCT 196

122

CONFEIVEI

HKKI/IL

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