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They
7. At COREPER on 23 March the Commission made clear that they were prepared to improve their proposals only in one field. suggested that the Community should explain to its negotiating partners in Geneva that it intended to take the action set out in the Commission paper. If other countries contested the possibility of the Community acting in this way the Community would then seek modification of the provisions of the MFA so as to make this possible. The Commission's suggestion is an improve- ment. Indeed it is an essential part of any Community position but the Commission paper itself remains unaltered and unsatis-
factory to us.
The Position in Geneva
8.
Because of the deadlock at the Council on 8 March, the Community took no position when the GATT Textiles Committee met on 16/17 March in Geneva.
Its next meeting is fixed for 18 April. If the Community does not agree on 5 April, it will again have no position in Geneva. Feeling is growing in the Community that, in this situation, those who favour an unchanged MFA (the US and the textile producers) would begin to dominate proceedings in Geneva.
The new element in the situation
+
9. We have had indications since Mr Varley wrote (UKREP Brussels telno 2090) that the French, who have hitherto been the most ardent
proponents of "globalisation", are preparing to compromise. It may well be that the Commission's new idea of ensuring international approval of their proposals will in fact be the price of French acquiescence. Acquiescence would to a large extent be in the French national interest. Unlike the UK, the French are worried about the traditional suppliers because, since they have historically small quotas on imports from countries such as Hong Kong, the "burden sharing formula" referred to in para 2 above operates to their disadvantage. They are not so worried about new suppliers since they have protected their market over many years and have room to take small quantities of imports.
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