RESTRICTED ·

4. COLOMBIA AND MEXICO. BOTH DELEGATIONS PROFESS WORRIES ABOUT THE POSSIBLE EFFECTS ON THEIR TRADE WITH THE UNITED STATES OF A

RESTRICTIVE AGREEMENT WITH THE COMMUNITY. THE COLOMBIANS WERE

SHAKEN BY OUR VERY LOW OFFER ON COTTON YARN (SEE ALSO OUR TELNO 6282, NOT TO ALL). THE MEXICANS BROKE OFF NEGOTIATIONS AFTER THE FIRST MORNING, APPARENTLY ON INSTRUCTIONS, CLAIMING TO HAVE BEEN

BETRAYED BY THE COMMUNITY AFTER THEIR HELPFUL ATTITUDE IN GENEVA

THIS SUMMER. TALKS RESUME TOMORROW, BUT WITH LITTLE CHANCE OF A

USEFUL DI ALOGUE GETTING UNDER WAY.

5. SRI LANKA. NEGOTIATIONS ARE AT A DELICATE STAGE. THE SRI LANKANS CONTINUE TO DEMAND EXEMPTION FROM RESTRAINTS FOR THREE YEARS,

WHICH THEY HAVE BEEN TOLD IS NOT POSSIBLE.

6. SINGAPORE. A SERIES OF INTENSIVE MEETINGS, SOME OF THEM VERY

RESTRICTED, HAS CREATED GOOD PROSPECTS FOR IMMINENT INITIALLING OF AN AGREEMENT, AFTER HARD BARGAINING ON INDIVIDUAL PRODUCT GROWTH RATES. THE REGIONAL RESTRAINTS WE NEEDED HAVE BEEN INCORPORATED.

7. MALAYSIA. THE COMMUNITY'S OFFER HAS BEEN EXPLAINED, AND THE

DELEGATION HAVE RETURNED HOME. TALKS WILL RESUME WHEN THEY RETURN.

8. THAILAND. THE DELEGATION IS STILL HERE, BUT FOR POLITICAL

REASONS THE TALKS HAVE BEEN ADJOURNED.

9. PHILIPPINES. THE PHILIPPINE DELEGATION HAVE ATTACKED THE

COMMUNITY'S DRAFT AGREEMENT IN A LEGALISTIC AND NATIONALISTIC

SPIRIT, BUT TALKS WILL CONTINUE THIS WEEK.

10. ARGENTINA. THE DELEGATION PEJECTED A QUOTA ON WOOL TOPS

AND HAVE BEEN OFFERED THE ALTERNATIVE OF A PRICE CLAUSE.

11. YUGOSLAVIA, THE DELEGATION APPEAR HAMPERED BY A LACK OF

INSTRUCTIONS, BUT ATTACH IMPORTANCE TO RESPECTING CURRENT TRADE

FLOWS.

12. GREECE. THERE APPEAR TO BE GOOD PROSPECTS OF REACHING AN

AGREEMENT WITH THE GREEKS, WHOSE INDUSTRY WOULD APPARENTLY HAVE

TROUBLE IN REACHING EVEN THE LOW LEVELS SET FOR 1978. TALKS WILL

RESUME IN BRUSSELS AT THE END OF NOVEMBER.

-2- RESTRICTED

/13.

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