RESTRICTED

AND THE IMPRESSION WE FORMED WAS THAT SO LONG AS A SECOND STAGE WAS

NOT IN EFFECT RULED OUT BY OVER-STRICT CONDITIONS, THE GERMANS IN THE INTERESTS OF ACHIEVING A COMMUNITY CONSENSUS, WOULD BE PREPARED TO GO ALONG WITH A TWO STAGE APPROACH THAT WOULD INCLUDE

· SOMETHING LESS THAN AN AUTOMATIC MOVE TO THE SECOND STAGE. ON THE NEED FOR PARALLEL PROGRESS ON OTHER MTN MATTERS (E.G. SAFEGUARDS) HE DID NOT RULE THIS OUT ALTHOUGH HE WAS UNHAPPY ABOUT TOO MUCH

STRESS BEING GIVEN TO IT. HE REMINDED THE COMMITTEE THAT GERMANY

HAD NOT BEEN COMMITTED BY PREVIOUS DISCUSSION IN THE COMMITTEE

TO THE VIEW THAT THE COMMUNITY SHOULD SEEK A TARIFF REDUCTION OF NO MORE THAN 25%. MOELLER (DENMARK) GENERALLY TOOK THE SAME LINE AS THE GERMANS.

8.

DE GROOTH (NETHERLANDS) ENDORSED THE WORKING HYPOTHESIS BUT SUGGESTED THAT WHATEVER TARGET FIGURES WERE AIMED AT IN ANY TARIFF FORMULA, THE REAL CUT WOULD BE SIGNIFICANTLY LESS BECAUSE E.G. THROUGH EXCEPTIONS, THERE WOULD BE CONSIDERABLE NIBBLING AT THE BASIC CONCEPTION. THE BELGIANS SPOKE IN A SIMILAR SENSE. CULLI GUAN (IRELAND) TOOK THE SAME LINE AS THE UK 1.E. THAT THERE

HAD TO BE REAL CONDITIONS FOR THE SECOND STAGE AND POSITIVE

PROGRESS ON SELECTIVE SAFEGUARDS.

DI SCUSSION ON PROCEDURE

9.

THE DISCUSSION IN THE MORNING WAS FOLLOWED BY AN INFORMAL

LUNCHEON GIVEN BY DENMAN AND A FURTHER SESSION IN THE AFTERNOON.

IN THESE SUBSEQUENT STAGES TWO PARTICULAR ISSUES WERE RAISED:~

(A) SINCE IT WAS AGREED THAT MEMBER STATES WERE CONFTRONTED WITH

A POLITICAL DECISION ABOUT THE SUCCESS OR FAILURE OF THE

MTNS IN WHICH THE TARIFF FORMULA WAS NO MORE THAN A PART, HOWEVER IMPORTANT, OF A WHOLE PACKAGE, IT WAS IMPORTANT

TO DECIDE WHEN THE COUNCIL OF MINISTERS SHOULD BE

FORMALLY CONSULTED:

(B) GIVEN THE IMPORTANCE, TO MANY MEMBER STATES, OF AN

IMPROVED SAFEGUARD PROCEDURE, HOW COULD THIS WHOLE SUBJECT-

BE BEST HANDLED.

ON (A), AFTER MUCH INFORMAL DISCUSSION THE CONSENSUS WAS THAT WHILE

A REPORT SHOULD BE MADE BY HAFERKAMP TO THE 13 OCTOBER COUNCIL AND

SOME DISCUSSION INVITED, IT WOULD BE PREFERABLE TO ENVISAGE FULLER

CONSIDERATION BY MINISTERS AT A LATER DATE SINCE THE COMMISSION

RESTUCTED

COULD:

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