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5. ON (C) ERNST NOW SEEMS TO HAVE CONCEDED MOST OF WHAT WE WANT ON SWING, CARRYOVER AND ANTICIPATION. WE SHOULD SWALLOW THIS AND CONCENTRATE ON LIMITING SPECIFIC CATEGORIES TO BEST COMPROMISE WE CAN GET BETWEEN GERMAN AND BENELUX LISTS.
6. ON D) I DOUBT WHETHER WE WILL GET ANYWHERE BY CLAIMING EQUITY ON GROWTH ACCORDED TO INDIA, PAKISTAN UNDERLINE NEXT TWO WORDS ET AL BUT I THINK WE SHOULD STICK TO OUR GUNS ON JAPAN.
7. IN THIS SORT OF SITUATION WE ARE LIKELY TO END WITH DISAGREED POSITIONS ON LEVEL PLUS GROWTH AND SOME HAZINESS OVER EXACT CATEGORISATION. AT THAT STAGE WE MIGHT BREAK OFF AND FORCE THE COMMISSION TO SEEK FRESH INSTRUCTIONS ON THESE PRECISE AND RELATIVELY SIMPLE POINTS (WHICH REINFORCES CASE FOR FAIRLY EARLY TALKS TO ALLOW TIME FOR A SECOND ROUND). IT IS AT THAT STAGE THAT HMG'S INTERVENTION WOULD SEEM MOST LIKELY TO BE HELPFUL. WE WILL ALMOST CERTAINLY REACH THIS POSITION IN ANY CASE AND WILL ONLY CREATE UNHELPFUL FRICTION IF WE CONTINUE TO DEMAND IN ADVANCE PRODUCTION AND CONSUMPTION FIGURES FOR WHOLE EEC WHICH WILL NOT BE MEANINGFUL WITH SUCH WIDE DISPARITIES IN IMPORTS OF INDIVIDUAL MEMBER STATES,
8. IN OTHER WORDS, I FIND I TEND TO AGREE MORE WITH JORDAN'S POINTS IN PARAS. 8 AND 9 OF UKMIS GENEVA TELEGRAM TO YOU NO. 25
THAN WITH ARGUMENTS USED SUBSEQUENTLY.
FCO PASS HONG KONG, UKDEL EC, BRUSSELS (FOR DODGE), BONN.
SIR E. ELVILLE
RIPEATED AS REQUESTED]
INCERACIONAL TRADE DISTRIBUTION:
ADDITIONAL DISTRIBUTION:
HONG KONG INTERNATIONAL TRADE.
IOG FONG D.
DDDDD
CONFIDENTIAL
COPIES TO:
MR. NICOLL, B.O.T.
MR. DUNNETT, B.0.7. MR. GREGORY, MIN.TECH.,
VICTORIA STREET.