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THAT THE WESTERN COUNTRIES MIGHT ACQUIESCE IN BILATERAL
ARRANGEMENTS FALLING MAINLY ON THE FAR EASTERN EXPORTERS. IN ANY CASE STANS HAD EXPLAINED TO THE DIRECTOR GENERAL OF GATT THAT HE WAS AGAINST BILATERAL DEALS. (MY TELEGRAM NUMBER 235 PARAGRAPH 5) WE SHOULD BE UNDER AN ILLUSION IF WE THOUGHT THAT SUCH ACTION WOULD BE CONFINED TO CHEAP TEXTILES AND THAT WE COULD ESCAPE THE CONSEQUENCES.
4. AS REGARDS NON-TARIFF BARRIERS I THOUGH, THERE WAS A
CONFLICT BETWEEN THE EMPHASIS LAID BY THE SWISS AND OTHERS
>
ON THE IMPORTANCE OF US LEADERSHIP IN TRADE LIBERALISATION ON
THE ONE HAND AND THE HANKERING AFTER EUROPEAN COMMERCIAL
ARRANGEMENTS' AND THE PURSUIT OF FISCAL POLICIES WHICH
THE AMERICANS DISLIKE ON THE OTHER.
5. I THINK THAT THE GROUND HAS NOW BEEN PREPARED FOR A DISCUSSION
OF GENERAL COMMERCIAL POLICY QUESTIONS AT NEXT WEEK'S EFTA
MINISTERIAL MEETING. THE INDICATIONS ARE THAT THIS WILL BE GENERALLY WELCOMED AND THAT THE INCLUSION OF A PARAGRAPH IN THE FINAL COMMUNIQUE ALONG THE LINES WE HAVE SUGGESTED (MY LETTER OF 11 APRIL TO HUGHES) WILL FIND FAVOUR WITH OTHER EFT A MINISTERS. I AM TELEGRAPHING SEPARATELY ABOUT THE PROSPECTS FOR THE DISCUSSION ON EUROPEAN INTEGRATION, WHICH IS LINKED WITH THIS ITEM ON THE MINISTERIAL AGENDA.
FCO PASS WASHINGTON UKDEL E E C BRUSSELS AND SAVING TOKYO
HONG KONG BRUSSELS BONN PARIS BERNE ROME THE. HAGUE
SIR E MELVILLE / THIS TELEGRAM HAS BEEN DISTRIBUTED TO THE OUTSIDE
RECEPIENTS OF EUROPEAN ECONOMIC & POLITICAL DISTRIBUTION__/
INTERNATIONAL TRADE DISTRIBUTION
TRADE POLICY DEPT.
COMMODITIES DEPT.
HONG KONG DEPT.
N.A.C.D.
EUR. INT. DEPT.
FAR EASTERN DEPT.
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