CONFIDENTIAL

URUGUAY HAD SAID THAT IT WOULD BE WILLING TO SIGN AN AGREEMENT

PROVIDED THE COMMUNITY DID NOT INSIST ON QUOTAS. DESPITE PROTESTATIONS FROM THE ITALIANS AND FRENCH WHO WANTED QUANTITATIVE RESTRICTIONS ON WOOL TOPS, THE COMMISSION ANNOUNCED THAT IT WOULD BE TAKING ITS RESPONSIBILITIES AND CONCLUDING AN AGREEMENT WITH

URUGUAY WITHOUT ANY QUANTITATIVE RESTRICTIONS.

SINGAPORE AND COLOMBIA

10.

OUR TEL NO 6445 OF 27 OCTOBER REFERS (NOT TO ALL). IN BRIEF, CONFIDENTIAL MEMORANDA OF UNDERSTANDING HAVE BEEN INITIALLED.

BRAZIL

11.

NO FIGURES WERE OFFERED TO BRAZIL DURING THE MEETING ON 27 OCTOBER. DISCUSSION CENTRED AROUND THE BRAZILIAN COMMENTS ON THE MODEL AGREEMENT. THEY WERE PARTICULARLY WORRIED THAT THE AGREEMENT DID NOT PROVIDE FOR AN OBJECTIVE BODY TO ARBITRATE IN DISPUTES. NEGOTIATIONS RESUME ON 3 NOVEMBER, ALTHOUGH THE BRAZILIANS CONTINUE TO EXPRESS DOUBTS ABOUT WHAT MIGHT BE ACHIEVED AT THESE NEGOTIATIONS GIVEN THE WIDE GAP BETWEEN THE TWO SIDES ON FIGURES.

MACAO

12. SIGNATURE OF A MEMORANDUM OF UNDERSTANDING ON THE FIGURES IS EXPECTED FRIDAY EVENING. NEGOTIATIONS HAVE GONE WELL: THE COMMISSION HAVE HELD TO ALL THE 1976 BASE LEVELS, AND ALMOST ALL GROWTH RATES ARE WITHIN THE SUGGESTED MAXIMA.

H

HONG KONG

13.

AGAINST THE BACKGROUND OF CONTINUING TECHNICAL DISCUSSIONS THE

HONG KONG DELEGATION OFFERED A COUNTER-DRAFT TO THE COMMUNITY'S DRAFT MODEL AGREEMENT, THE NEW DRAFT REASSERTS INTER ALIA THE IMPORTANCE OF EXPORT AUTHORIZATION AS A MEANS OF CONTROLLING TRADE. THE COMMISSION ACCEPTED THIS DRAFT WITHOUT COMMITMENT (PARTLY) IN AN ATTEMPT TO HELP HONG KONG OUT OF AN IMPASSE) AND HAVE AT THE SAME TIME CONFIRMED IN WRITING TO THE DELEGATION THAT HONG KONG SHALL HAVE A RIGHT TO CONTROL EXPORTS TO THE COMMUNITY ON THE BASIS OF PRESENT ARRANGEMENTS. AS A QUID PRO QUO THE HONG KONG DELEGATION HAVE PRIVATELY ASSURED THE COMMISSION THAT THEY WOULD, IF THE COMMUNITY WOULD DEAL ON THE BASIS OF THE NEW DRAFT, START TO TALK ON THE BASIS OF THE COMMUNITY'S FIGURES.

3 CONFIDENTIAL

/14. MEMBER

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