CYPHER CAT -A-

PRIORITY BONN TO

TEL NO. 454

CONFIDENTIAL

us file

84

FOREIGN AND COMMONWEALTH OFFICE

21 APRIL 1969

CONFIDENTIAL Z NEUTRAL__/

ADDRESSED TO F C O TEL NO. 454 OF 21 APRIL 1969 AND R F 1 PRIORITY

TO UKMIS GENEVA AND ROME ROUTINE TO UKDEL EEC, THE HAGUE, PARIS AND WASHINGTON AND SAVING TO LUXEMBOURG, BRUSSELS, TOKYO, HONG

KONG AND BERNE.

५०)

MY TELEGRAM NUMBER 444: STANS VISIT.

WE HAVE NOW OBTAINED FROM THE ECONOMICS MINISTRY THE FOLLOWING

ADDITIONAL INFORMATION ON THE DISCUSSION HERE:

(A) NON-TARIFF BARRIERS.

THE GERMAN ARE CONTENT WITH THE READINESS OF THE

AMERICANS TO PERSUE THESE IN THE FRAMEWORK OF GATT.

AS EXPECTED, MR. STANS EMPHASISED THE IMPORTANCE OF BRINGING BARRIERS AND DISCRIMINATORY PRACTICES INTO THE OPEN, AND ARGUED AGAIN THAT THE EXEMPTION OF EXPORTERS FROM TAX VALUE ADDED AMOUNT TO AN EXPORT SUBSIDY. THE GERMANS DENIED THIS, ARGUING THAT THEIR T.V.A. ARRANGEMENTS ARE NEUTRAL. IT WAS AGREED THAT

GOVERMENT PROCUREMENT SHOULD BE REVIEWED, AND THE GERMANS REPEATED THEIR INTEREST IN THE REDUCTION OF

BUY AMERICAN LEGISLATION AND ABOLITION OF THE

AMERICAN SELLING PRICE SYSTEM.

(B) U.S. AGRICULTURAL EXPORTS.

RECEIVED IN REGISTRY No. 51

22 APR 1960

ники

HKX6/20411

THE AMERICANS CONCENTRATED ON OIL SEED, AND SEEMED

TO BE TRYING TO ENLIST GERMAN OPPOSITION TO E.E.C.

PROPOSALS FOR TAXING EDIBLE OILS. THE GERMANS INDICATED

THAT THEY WOULD OPPOSE SUCH A TAX WHICH WAS DETRIMENTAL

TO AMERICAN OIL SEEDS. ARGUING THE CASE IN FAVOUR OF GROWTH EXPORTS, THE AMERICANS DREW A PARALLEL WITH

EUROPEAN EXPORTS OF SMALL CARS.

(C) TEXTILES.

THIS WAS NOT ONLY THE STICKIEST DISCUSSION, BUT

THE LEAST FRANK. THE GERMANS ASKED FOR DETAILED FIGURES

TO SUPPORT THE AMERICAN ASSERTIONS ABOUT THE DIFFICULTIES

13.1

CONFIDENTIAL

/or THEIR

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