CONFIDENTIAL

4. WE HAVE A PROBLEM ABOUT THE REVIEW CLAUSE, ARTICLE 14. IT IS ESSENTIAL THAT IT SHOULD NOT (REPEAT NOT) BE APPLICABLE TO UPW

REVISION ONLY. WE CAN AGREE EITHER TO ITS DELETION FROM THE

DRAFT MODEL AGREEMENT OR TO THE SPECIFIC MENTION IN IT OF REVISION

BOTH UPWARDS OR DOWNWARDS. WE CAN ALSO AGREE TO DECISIONS BEING

TAKEN ON AN AD HOC BASIS WITH EACH NEGOTIATING COUNTRY ON WHETHER OR NOT ANY REVIEW CLAUSE, PROVIDED IT IS OF THE RIGHT NATURE, BE INCLUDED.

PROTOCOL A ARTICLE 8

>

5. THE UK IS RELUCTANT TO ACCEPT THE DELETION OF THIS ARTICLE, THUS REMOVING THE COMMUNITY'S RIGHT TO REFUSE IMPORT LICENSES IN

CASES OF SUSPECTED OVERSHIPMENT. WE THINK THAT THIS COULD BEST

AGAIN BE DECIDED ON AN AD HOC BASIS WITH EACH INDIVIDUAL

NEGOTIATING PARTNER.

BACKGROUND

7 TRIGGERS WE WOULD PREFER SPECIFIC TRIGGERS FOR EVERY GROUP

(INCLUDING 11 TO VI). AT YOUR DISCRETION, YOU HAVE AUTHORITY TO AGREE TO THE REMOVAL OF THE LOWER TRIGGERS IN GROUP 1, AND IN GROUPS 111 TO VI. BUT YOU SHOULD TRY FOR A SINGLE 4 PER CENT TRIGGER IN

GROUPS 111 TO VI. BECAUSE THEY ARE IN THE MANDATE YOU CANNOT

AGREE TO THE DELETION OF THE 0.5 PLUS 30 PER CENT TRIGGER FOR GROUP 11 NOR FOR THE MOMENT, THE QUARTER OF THE THEORETICAL SHARE

AS A REGIONAL TRIGGER FOR GROUP 11. IF ISOLATED ON EITHER OF THESE

TRIGGERS, YOU SHOULD INDICATE THAT YOU WILL SEEK FURTHER INSTRUCTIONS IF THE OVERALL PACKAGE ON TRIGGERS LOOKS SATISFACTORY TO US, WE MIGHT EVENTUALLY BE PREPARED TO DROP THE REGIONAL QUARTER

AND PERHAPS GO FOR A SINGLE 1 PER CENT TRIGGER FOR GROUP 11.

PROTOCOL A, ARTICLE 8

8. WE WOULD BE PREPARED TO DELETE THIS CLAUSE IN RETURN FOR A GENTLEMAN'S AGREEMENT WITH HONG KONG, BUT NOT FOR ANY OTHER SUPPLIER. IT WOULD PROBABLY BE WISER FOR YOU TO MENTION THIS

PRIVATELY TO THE COMMISSION RATHER THAN IN OPEN FORUM,

OWEN

TRAME EXTERNAL EID (E)

HK & GD

ADDITIONAL DISTN. FRAME

COPIES TO:

MR.ABRAMSON

DOT

MR. HELLINGS

DOT

MISS MACFARLANE DOT

MISS LOWNE

DOI

MR.FARRY

DOI

MR.BROWN

DOI

2

CONFIDENTIAL

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