4 RESTRICTED

is other Community countries which have the main interest in avoiding

any opening up of the Community market.

CEREALS

10

International consultations are continuing in pursuit of a

new International Wheat Agreement with economic provisions including the

establishment of an international stock-pile. A Conference in Feb/March

was unable to reach agreement, inter alia on the Community's proposals

for minimum/maximum prices for trade and for related supply/purchase

obligations. An interim Committee is now carrying the consultations

forward, with a view to possible resumption of the Conference in

September. There now seems a possibility of a compromise but the

question the Council will need to consider is whether the Commission

may not be going too far to concede points to the Americans which

could be prejudicial to consumer and budgetary interests.

DAIRY PRODUCTS

11

The Community is now developing in practical detail its

proposals for international arrangements involving maximum/minimum

prices for trade in products where this is suitable, and for

bilateral joint discipline agreements within the overall framework -

notably for cheese. Considerable progress has been made but there

are still no firm commitments and, in particular, the attitude which

the USA will finally adopt is unclear.

MEAT

12

Only beef is under consideration. Attention has concentrated on

the Community's proposals for joint disciplines, with bilateral

agreements within the overall framework. Progress has been held up

because of delay by the Commission in bringing forward detailed

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