3

RESTRICTED

those actually applied and where the Community has a good trade

interest and should make up the outstanding leeway through greater

concessions on processed agricultural products such as whisky;

she might also quite reasonably, and probably as a gesture separate

from the MTNs, make her MTN reductions in a single step while countries

not in such gross surplus space their reductions over a number of years.

REQUESTS TO THE EEC

7

The Community is now receiving a growing number of requests for

improvements or modifications to its tariff offer on which the

comments of sponsoring divisions are being sought. The US have asked for greater than formula cuts on a wide range of products (including

some on the EEC "hard-core list") while some of the LDC's are

asking for less than formula cuts (or total exceptions) to protect

their GSP preferences. A difficult balancing act will be required in

this area over the next few months.

THE COMMUNITY'S AGRICULTURAL OFFER

8

In consultations with other countries strong criticism has been

expressed of the inadequacy of the offer circulated in January. There

will have to be consideration of improvements sometime but there have

been none as yet.

THE AGRICULTURAL OFFERS OF OTHER COUNTRIES

9

Similarly, in those same consultations the Community has pressed

its view that improvements should be made in offers made on products

of Community interest, but without securing much in the way of

response. A problem is that while the UK, with its interests in exports

of whisky, tobacco manufactures and a range of processed foodstuffs, has

a major interest in better access for agriculture in third markets, it

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