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THE COMMUNITY'S CURRENT IDEA OF A SUITABLE ARTICLE 4 AGREEMENT
ADMITTEDLY CANNOT BE FULLY RECONCILED WITH ALL THE OTHER PROVISIONS
OF THE CTA BUT FOR US THIS IS A FORLORN ISSUE, THE COMMUNITY
WILL SURELY BE INFLUENCED MORE BY THE NEED TO NURTURE ITS NASCENT
COMMON COMMERCIAL POLICY THAN TO COMFORM SCRUPULOUSLY WITH ARGUABLE
FACETS OF THE CTA.
THE POINT OF PRINCIPLE HAS NOW BEEN ESTABLISHED, TO OUR
TACTICAL ADVANTAGE AT THE VERY LEAST.
ARGUMENTS AS TO WHAT MAY BE 'HUTUALLY ACCEPTABLE ARE VALID ON
BOTH SIDES AND I FEEL WE SHOULD NOW BE THINKING IN TERMS OF TONNAGE, MAXIMUM TOLERABLE COVERAGE ETC. 1.E. OF (UNDERLINE NEXT WORD) OUR
OPENING OFFER ON 29 JULY.
ANY FURTHER STAND BY US NOW SIMPLY ON PRINCIPLE WILL BE
MISINTERPRETED EVERYWHERE AS A REFUSAL TO NEGOTIATE. I THINK THIS
IS POTENTIALLY MORE DAMAGING TO US THAN ANY ALTERNATIVE COURSE OF
ACTION, AND I RECOMMEND THAT WE NOW GO THROUGH ALL THE PROCESSES
OF NEGOTIATION UNTIL WE FEEL THAT WE HAVE EXTRACTED THE COMMUNITY'S
FINAL MAXIMUM OFFER, WHICH WE WILL THEN HAVE TO WEIGH AGAINST THE
PROBABLE CONSEQUENCES OF ITS REJECTION.
F C O PASS PRIORITY TO UKMIS GENEVA AND SAVING TO BONN THE HAGUE
PARIS AND ROME.
PASSED SAVING TO UKDEL EEC.
SIR J. BET TH
[REPEATED AS REQUESTED AND TO HONG KONG]
[NOTE BY COMMS. DEPT. DELAY DUE TO REQUEST
FOR REPETITION]
INTERNATIONAL TRADE DISTRIBUTION:
COMMODITIES D.
ADDITIONAL DISTRIBUTION:
HONG KONG INTERNATIONAL
TRADE.
DDDDD
CONFIDENTIAL