RESTRICTED

d.

e.

f.

h.

i.

j.

The French proposals for the vehicle sector are rather complex but the chief point emerging is that they include vans and they include the motive units for large road trailers, but they do not include (at least so far) cars. It rather looks as if while our coverage is notably wider than theirs in so far as all cars and lorries are included their coverage may be wider in that it includes these road trailers. Perhaps we ought to think further about this.

The French cover all the paper category (Chapter 48) while we only have on it kraft liner. The argument put forward here is not just that 40% of France's land area is timberland but that unless the Community starts by a wide ranging exclusion of all paper its negotiating position vis-a-vis Canada will be gravely damaged. French accept that at the end of the day there might need to be some tariff reductions within this area.

The

The French not only wish to cover travel goods (42.02) but also leather (41.02B).

Apart from what are called "kickers" in France and are probably plimsolls (64.02 ExB) the French do not wish foot- wear to be excepted: the starting point should be, in their view, to attack the US and Japanese failure to make offers in these areas and only if these efforts fail should the Community itself consider withdrawing footwear from its own tariff offer.

The French wish to exclude fork-lift trucks and other works trucks (87.070), small generators (88.22ExC), cells and batteries for calculators etc. (85.03.10), certain measuring instruments and wall tiles (69.07 and 69.08), none of which we have on our lists (but one or two of which, e.g. perhaps the cells and batteries, possibly deserve thinking about).

Whereas we want to except aluminium and aluminium and copper semi-finished products the French want to exclude all non-ferrous metals and semi-finished products except semi-finished products of aluminium.

CRE1 will be in touch with individual sponsoring divisions about the implications of this list for our own and of both of them for the Commission proposals which we expect soon, but there may be value to recipients in having the above quick overview of what seems to be involved in the French proposals. In some areas (e.g. paper) seem to have followed a very broad brush approach while others (e.g. measuring instruments and also petro-chemicals which are not discussed above) they seem to have made an attempt to define very precisely where the French interests lie.

THE COMMUNITY AGRICULTURAL OFFER.

9. This has not been forgotten by us and we do not think it has been forgotten by the Commission.

There is however nothing to report

on it.

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