THOMAS)
2. WE HAVE NOW SPOKEN TO CANETTI IN THE COORDINATING COMMITTEE FOR
EUROPEAN QUESTIONS (SGCI). HE CONFIRMED THAT THERE HAD BEEN NO
SIGNIFICANT CHANGE IN FRENCH THINKING, THE CURRENT PROPOSALS
REPRESENTED A CLEAR IMPROVEMENT ON THE BILATERAL AGREEMENTS WHICH WERE ABOUT TO EXPIRE. BUT IT WOULD BE NECESSARY TO SUBJECT THE
COMMISSION'S FORECASTS OF IMPORT QUANTITIES TO CLOSE SCRUTINY IN
ORDER TO ENSURE THAT THERE VERE NO HIDDEN PITFALLS. THE PROPOSED
DISTRIBUTION WITHIN THE COMMUNITY OF IMPORT QUOTAS WHICH EXCEEDED
THE CEILINGS, LAID DOWN IN THE ORIGINAL NEGOTIATING MANDATE WOULD ALSO
HAVE TO BE LOOKED AT CAREFULLY. BUT, ASSUMING THAT THE RESULTS OF THIS EXAMINATION WERE SATISFACTORY, HINISTERS WOULD PROBABLY BE ADVISED TO ACCEPT THE COMMISSION PACKAGE. HOWEVER, THE PROCESS WOULD CLEARLY TAKE SOME DAYS AND THE FINAL DECISION WAS LIKELY TO
BE DELAYED UNTIL THE LAST MOMENT.
3. CANETTI THOUGHT THAT RENEWAL OF THE GATT MFA WOULD BE A
NECESSARY CONSEQUENCE OF MEMBER STATES' ACCEPTANCE OF THE PROPOSED
BILATERAL AGREEMENTS. THE EXPORTING COUNTRIES UNDOUBTEDLY EXPECTED
THE COMMUNITY TO RENEW.
FCO PLEASE PASS SAVING TO OTHER EEC POSTS
JAMES
NNNN
SENT AT 13163OZ C MCL
RECD AT 13163OZ PJH