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CURRENTLY DIVIDED OPINION, BUT HE ALSO SPOKE OF THE POSSIBILITY OF MEETINGS DURING THE FIRST HALF OF JUNE OR THE FIRST HALF OF
JULY''.
4.
ERNST DID ACCEPT THAT THE GERMAN AGREEMENT WOULD INDEED HAVE TO DE EXTENDED IF A NK/EEC AGREEMENT WAS NOT CONCLUDED BEFORE THE SUMMER RECESS, BUT HE GAVE THE IMPRESSION THAT HE NOW DID HOT LIKE THAT SORT OF SITUATION AT ALL. HE CLEARLY WANTS TO MAKE ALL POSSIBLE TACTICAL PLAY OF OUR DEPENDENCE ON THE GERMAN MARKET.
5. I TOLD ERNST THAT I WOULD REPORT HIS VIEWS TO YOU AND THAT HE WOULD BE ADVISED OF YOUR REACTION EITHER THROUGH ME OR, MORE LIKELY, BY JORDAN IN GENEVA DURING THE CTC MEETING. IN HIS USUAL WAY ERNST IS DELIBERATELY UNDER-ESTIMATING THE OUTSTANDING DIFFERENCES BETWEEN HIS AND OUR PRESENT POSITIONS. HE GAVE NO INDICATION THAT THE FORMER HAD CHANGED IN ANY WAY BUT I THINK HE MAY MAKE SOME EXAGGERATED CLAIMS IN GENEVA FOR EEC PRESENTATIONAL PURPOSES.
6. 1 CONSIDER THAT WE SHOULD NOW REACT DECISIVELY TO ERNST'S SUGGESTIONS AND LEAVE HIM IN NO DOUBT OF OUR FORMAL VIEWS ON THE NEGOTIATIONS STATE-OF-PLAY AND ON A POSSIBLE FUTURE TIMETABLE. PRESUMABLY SUCH REACTION COULD BEST BE CONVEYED BY JORDAN TO ERNST IN GENEVA AS SOON AS THE FUTURE OF THE CTA IS CUT-AND-DRIED.
MORE FORMAL ACTION,
ON OUR SIDE. ON OUR SIDE. THE CTC
7. I ALSO SUGGEST THAT WE MIGHT NOW TA WITH THE GERMANS SO THAT THEY CAN WEIGH MEETING OFFERS A CONVENIENT DISCREET OPPORTUNITY FOR JORDAN TO DO THIS ALSO IF YOU AGREE.
3.
I NATURALLY STRESSED TO ERNST THAT WE TOO HAD IMPORTANT NEGOTIATING COMMITMENTS THIS YEAR.
FCO PLEASE PASS TO GOVERNOR HONG KONG AND PRIORITY TO UKMIS GENEVA FOR JORDAN.
MR. EWART-BIGGS
REPEATED AS REQUESTED/
INTERNATIONAL TRADE DISTRIBUTION
COMMODITIES DEPT.
W.E.D.
H.K. DEPT.
NNNNN
CONFIDENTIAL