5 RESTRICTED
proposals for the bilateral agreements. Australia is particularly
critical of the EEC proposals so far. The Commission is now under
pressure from member states to bring its detailed proposals before them
quickly.
SAFEGUARDS
13
Discussions in this area have continued on an informal basis,
both bilaterally and multilaterally. Progress has been made in that the
US publicly and the Japanese privately have both now appreciated the
seriousness which the Community attaches to a successful outcome on
the question of selective application of Article XIX. However, much
negotiating remains to be done between these three parties to reach
agreement on any revised conditions which might be applicable in the
case of safeguards generally and of selectivity in particular.
Multilateral informal discussion has revealed support for selectivity
from the Nordic countries and one or two others (eg Nigeria) but
general resistance from the developing countries as a bloc. It is,
however, to be hoped that some of these will at least acquiesce in
revised arrangements. The question is whether they will seek conditions
greater than those the Community in particular will be prepared to give.
SUBSIDIES AND COUNTERVAILING
14 One of the Community's main objectives is to see the US fall into
line with the GATT provisions on countervailing and accept the principle
of material injury as a pre-requisite for beginning countervailing
investigations. The US have recently put forward proposals on both
subsidies and countervailing which in return for the acceptance of
material injury seeks to broaden the responsibilities of Contracting
Parties in respect of subsidies, both domestic and export. These
proposals are currently being studied, but whilst the Community can
appreciate both the philosophical difficulties which the US have in