CONFIDENTIAL
IN THE SPECIFIC TEXT OF THE PRESIDENCY'S COMPROMISE WE ARE LOOKING ESPECIALLY FOR 4 ELEMENTS:
5.
A. ZERO GROWTH FOR COTTON YARN.
THE PRESIDENCY COMPROMISE
MAKES THIS PROVISION. THE U.K. CANNOT ACCEPT ANY OTHER
SOLUTION,
B. AN EFFECTIVE MECHANISH FOR STOPPING IMPORTS ONCE CEILINGS
ARE REACHED. WE ARE STILL EXAMINING THE PRESIDENCY COMPROMISE FOR ITS IMPLICATIONS IN THIS FIELD. THE MAJOR GAP EVIDENT IS THE TREATMENT TO BE ACCORDED TO COUNTRIES WITH WHOM THE COMMUNITY HAS PREFERENTIAL AGREEMENTS. NEEDS SPELLING OUT.
C. GROWTH RATES MUST BE IN INVERSE PROPORTION TO IMPORT
PENETRATION. THE PRESIDENCY COMPROMISE GOES SOME WAY TOWARDS MEETING THIS BUT WE SHALL NEED TO EXAMINE IT FURTHER,
D.
THIS
THE COMPLICATED ARRANGEMENTS FOR CALCULATING INDIVIDUAL MEMBER STATES' SHARES OF IMPORTS OF ALL PRODUCTS EXCEPT THOSE IN GROUP 1. WE SHALL NEED TO EXAMINE THESE CAREFULLY AND LIKE OTHER MEMBER STATES WILL WANT TO CALCULATE THEIR EXACT IMPLICATIONS IN CONCRETE TERMS BEFORE GIVING OUR APPROVAL.
WE HAVE
G.S.P. THE U.K. HAS ALREADY MADE IT CLEAR IN THE G.S.P. WORKING GROUP THAT IT WILL WANT TO EXAMINE WITH GREAT CARE PROPOSALS FOR A NEW G.S.P. SCHEME, NOW TO COME INTO EFFECT ON 1 JULY 1978. RESERVATIONS ABOUT USING THE 3.9.P. AS AN INSTRUMENT OF TRADING POLICY. WE WOULD ALSO SEE GREAT DIFFICULTY IN REMOVING EXISTING G.S.P. ACCESS FROM RECALCITRANT TEXTILE SUPPLIERS.
BACKGROUND.
6. IT SEEMS CLEAR TO US THAT A FURTHER COREPER MEETING WILL BE NECESSARY, PROBABLY ON 7 OR 10 OCTOBER, YOU SHOULD NOT GIVE ANY
INDICATION OF WHEN THE U.K. WILL BE ABLE TO TAKE A FINAL POSITION.
OWEN
FRAME EXTERNAL
EID
HK & GD
COPIES TO
MR HARRIS CABINET OFFICE MISS LOWNE PARRY
MR GRAY HELLINGS
CZ DIVN DOJ DOT
2 CONFIDENTIAL