CONFIDENTIAL

are broadly in favour of the Commission approach. The Germans (perhaps supported by the Danes) are likely to raise three

points:

(a) they believe the Community should not attempt to

conclude bilateral agreements with as many as 30 supplying countries;

(b)

they have doubts about the Community using the

GSP as an instrument of trade, rather than development

policy;

(c) they are worried about the idea of proposals on

industrial policy and on Rules of Origin.

European Integration Department (External) 16 September 1977

7

CONFIDENTIAL

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