CONFIDENTIAL
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3. WE LEFT CASPARI IN NO DOUBT THAT THE U.K. COULD NOT ALLOW
THE BILATERAL NEGOTIATIONS TO GO AHEAD UNTIL WE HAD RECEIVED.
SATISFACTION ON THESE POINTS.
4. CASPARI ACCEPTED IMMEDIATELY THAT NEGOTIATIONS COULD NOT
OPEN UNTIL THE GENERAL GUIDELINES BROADLY ENDORSED BY MINISTERS
AT THE SEPTEMBER COUNCIL HAD BEEN FILLED OUT INTO AN AGREED
DETAILED MANDATE AND FORMALLY ADOPTED BY ALL MEMBER STATES.
5. ON COTTON YARN CASPARI SAID THAT THE PROBLEM CENTERED ON
BRAZIL, WHOSE EXPORTS IN 1976 HAD BEEN ABNORMALLY LOW AND
INDEED BELOW HER QUOTA LEVELS. GIVEN BRAZIL'S LEADING POSITION IN
BOTH LATIN AMERICA AND THE WIDER M T N AND THIRD WORLD CONTEXTS,
THE COMMISSION FELT THAT THE COMMUNITY SHOULD NOT RISK OPEN
WAR'' BY SEEKING TO IMPOSE 1976 LEVELS IN THE FORTHCOMING BILATERAL
NEGOTIATIONS. THEY HAD THEREFORE PROPOSED THAT GROWTH FOR COTTON
YARN SHOULD BE HELD BACK TO THE ESTIMATED GROWTH IN CONSUMPTION.
6. ON POINTS (11) AND (111) ABOVE CASPARI DOUBTED WHETHER ANY SUBSTANTIVE, AS DISTINCT PERHAPS FROM PRESENTATIONAL, DIFFICULTIES EXISTED.
7. HE READILY ACCEPTED THE VALIDITY OF OUR POINT (IV) ABOVE: THE
FAULT LAY WITH THE FRENCH WHO HAD REFUSED TO ACCEPT THE OPERATION
OF THE NORMAL BURDEN SHARING FORMULA. HE AGREED TO SPEAK TO
TRAN ABOUT THE U.K.'S DIFFICULTIES ON THIS SCORE.
8. WE ALSO SPOKE TO THE COUNCIL SECRETARIAT ABOUT THE WAY AHEAD.
THEY CONFIRMED THAT A LENGTHY DOCUMENT SUMMARISING THE OUTCOME
OF LAST WEEK'S EXCHANGES IN THE GROUP WOULD BE AVAILABLE IN THE
COURSE OF TOMORROW: AND THAT A SECOND SHORTER DOCUMENT WOULD BE
PREPARED IN THE LIGHT OF TOMORROW'S DISCUSSIONS IN THE GROUP FOR COREFER (DEPUTIES) ON WEDNESDAY 5 OCTOBER. WE SHALL TELEGRAPH
THE LATTER AS SOON AS IT IS RECEIVED.
9. THE SECRETARIAT TOLD US THAT THE BELGIAN PRESIDENCY WERE LIKELY TO PUT FORWARD SOME COMPROMISE PROPOSALS IN THE WORKING GROUP
TOMORROW, THESE FROPOSALS WOULD PROBABLY INCLUDE
--2- CONFIDENTIAL
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