CONFIDENTIAL

United Kingdom Delegation

to the European Communities

BRUSSELS

22 August 1969

2

Common Commercial Policy

David Hannay mentioned in his letter to you of 19 June that the Italians who had protested at the presentation of the Commission's proposals for common import policy in the ceramics sector (his letter of 5 May), had asked the Commission not to put forward any proposals in other sectors since these greatly complicated their bilateral trade relations with the Japanese.

2.

The Commission had made it clear that they could not accept such a request and now four more proposals have been sent to the Council dealing with ball-bearings, cutlery, umbrellas and foot-wear. I enclose copies of the proposals.

3. I am told by the German permanent representation that the Italians are still holding up discussion on the ceramics proposal and that these new proposals are not likely to appear on the agenda of the Working Group of the Council to whom they will be referred until the end of September.

4. At Annex 1 in the paper on ball-bearings, there is mention of proposals being submitted in the sectors on watches and optical mechanisms etc. I am told by the same German source that these proposals have not yet been sent forward by the Commission to the Council.

J. B. Ingram Esq.,

Board of Trade.

(J. MELLON) .

CC:

M. R. Morland Esq., European Integration Dept. FCO R. G. Giddens Esq., Trade Policy Dept. FCO

?

M. Stewart Esq., Hong Kong Dept. FCO

D. J. C. Jones Esq., UKMis Geneva

B. Abbott Esq., UKMis Geneva

CONFIDENTIAL

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