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4. THE U K'S CHIEF WORRY IS THAT ARTICLE XIX AS IT IS NOW DRAFTED IS APPLICABLE ON AN ERGA OMNES BASIS. WE ARE THEREFORE WORRIED THAT WAIVERS IN THE CASE OF COUNTRIES WITH WHOM THE COMMUNITY HAS SATISFACTORY BILATERAL AGREEMENTS WILL AFFECT OR EVEN NULLIFY THE COMMUNITY'S ABILITY TO TAKE ARTICLE XIX ACTION AGAINST COUNTRIES WITH WHOM THE COMMUNITY DOES NOT HAVE SATISFACTORY BILATERAL AGREEMENTS. MOREOVER ARTICLE 20 OF THE NEW DRAFT AGREEMENT PROVIDES FOR A 90 DAY PERIOD FOR DENUNCIATION OF ANY NEW AGREEMENT. DOES THIS MEAN THAT IN ANY CIRCUMSTANCES NO ERGA OMNES ACTION UNDER G A T T ARTICLE XIX WOULD BE POSSIBLE FOR A 90 DAY

PERIOD? SUCH A DELAY COULD WELL BE DANGEROUS IN CERTAIN CIRCUMSTAN- CES. IT ALSO SEEMS UNNECESSARY TO DENOUNCE THE WHOLE OF A NEW

AGREEMENT IN ORDER TO TAKE ARTICLE XIX ACTION AGAINST PRODUCTS

WHICH MAY NOW ONLY BE IN BASKETS,

5. IN ANY EVENT THE UK BELIEVES THAT THE FIRST LINE OF THE SECOND TIRET OF THE DRAFT ARTICLE 3 SHOULD BE REDRAFTED TO READ QUOTE SUBJECT TO THE SATISFACTORY WORKING OF THE AGREEMENT AND, IN PARTICULAR, THE PROVISIONS SET OUT IN ARTICLES 6 AND 8, THE COMMUNITY UNDERTAKES......... UNQUOTE IT IS IMPORTANT THAT THE TRIGGER MECHANISM IN ARTICLE 3 MUST BE SPECIFIED AS ONE OF THE SECTIONS OF THE NEW AGREEMENT WHICH NEEDS TO BE FUNCTIONING

PROPERLY.

BACKGROUND

6. PROVIDED YOU CAN OBTAIN ASSURANCES WHICH YOU DEEM SATISFACTORY ON THE ERGA OMNES POINT AND ON THE REDRAFTING OF ARTICLE 3, YOU CAN ACCEPT ON A PERSONAL BASIS. WE SHALL THEN TAKE A RAPID DECISION ON WHETHER WE NEED TO FIGHT THE POINT FURTHER.

OWEN

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MR RIDLEY - DOI

MISS LOVNE - - DOI

MR GRAY - DOT

MISS MACFARLANE - DOT

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