GRS1650
IMMEDIATE
DESKBY 108988Z
CYPHER/CAT-A-
FM UKREP BRUSSELS 091030Z
HKK 121/616/1
ра
1300 /
J
223
RESTRICTED
FRAME EXTERNAL
DESKBY 1309907
TO IMMEDIATE FCO TELNO 5929 OF 3 OCTOBER.
INFO UKMIS GENEVA AND WASHINGTON
INFO SAVING TO BONN AND PARIS,
ARTICLE 113 COMMITTEE (FULL MEMBERS): 7 OCTOBER 1977
MULTILATERAL TRADE NEGOTIATIONS:
TARIFF FORMULA AND RELATED MATTERS
SUMMARY
1. THERE WAS NO AGREEMENT THAT MEMBER STATES COULD ACCEPT THE STRAUSS-HAFERKAMP WORKING HYPOTHESIS ON TARIFFS. GERMANY AND DENMARK WERE READY TO DO SO: THE FRENCH WERE NOT. ALL OTHER MEMBER STATES, INCLUDING THE UK, WERE PREPARED TO CONSIDER THE HYPOTHESIS FURTHER BUT ONLY SUBJECT TO CERTAIN CONDITIONS, INCLUDING A MEANINGFUL BREAK CLAUSE BETWEEN THE TWO STAGES AND SUBSTANTIAL PARALLEL PROGRESS IN OTHER AREAS OF THE NEGOTIATIONS INCLUDING, PARTICULARLY, SAFEGUARDS. A NUMBER OF COUNTRIES
WERE CLEARLY INCLUDING ITALY, BELGIUM, AND THE NETHERLANDS HESITANT ABOUT AN ULTIMATE TARIFF CUT OF AS MUCH AS 405 ANYWAY (EVEN IN TWO STAGES). THERE WAS A GENERAL CONSENSUS THAT THE DECISION FACING MEMBER STATES WAS AS MUCH POLITICAL AS ECONOMIC AND THAT AT SOME APPROPRIATE STAGE THE COUNCIL OF MINISTERS WOULD NEED TO TAKE A DECISION IN PRINCIPLE.
V
2. IT WAS ACREED THAT IT WOULD PROBABLY DE PREMATURE TO SEEK FUNDAMENTAL DECISIONS AT THE 18 OCTOBER COUNCIL BUT THAT COMMISSIONER HAFERKAMP SHOULD, ON THIS OCCASION, MAKE A REPORT WHICH WOULD PROVIDE AN OPPORTUNITY FOR SOME DISCUSSION. THIS APART, A MORE PREPARED MEETING OF MINISTERS PRIMARILY CONCERNED WITH THE MULTILATERAL TRADE NEGOTIATIONS WOULD PROBABLY BE NECESSARY. IN
FESTUCTED
REACHING