1. WE HAVE SPOKEN AGAIN TO COUSIN (SGCI) ABOUT THE FRENCH POSITION
ON THIS SUBJECT.
2. COUSIN SAID THAT THE FRENCH TEAM SENT TO LISBON EARLIER THUS
WEEK HAD NOW RETURNED. THEY HAD FOUND THE PORTUGUESE UNYIELDING. THEY HAD BEEN PREPARED TO MAKE SOME SLIGHT REDUCTIONS ON MENS' SHIRTS, BUT ONLY IN RETURN FOR ENLARGED CEILINGS ON OTHER PRODUCTS. THE FRENCH HAD SUGGESTED TO THE PORTUGUESE THAT THEY MIGHT ACCEPT LOWER CEILINGS THIS YEAR IN RETURN FOR GREATER ADVANCES IN 1979: BUT
THE PORTUGUESE WERE NOT PREPARED TO CONSIDER THIS.
3. COUSIN SAID THA AFTER THIS FAILURE TO SHIFT THE PORTUGUESE THROUGH BILATERAL TALKS, HIS PERSONAL VIEW WAS THAT FRANCE WOULD BE CBLIGED TO ACCEPT THE SOLUTION PROPOSED BY THE COMMISSION. THIS CONFIRMS OTHER INDICATIONS WE HAVE HAD, EG. FROM THE CABINET OF THE MINISTER FOR EXTERNAL TRADE.
4. COUSIN ASKED ABOUT BRITISH ATTITUDES, BAYNE SAID THAT HE BELIEVED WE WOULD WISH TO RAISE THE SUBJECT AT THE COUNCIL ON & JUNE, BOTH FOR THE SPECIFIC PROBLEM OF PORTUGAL AND IN THE MORE GENERAL CONTEXT OF LIAISON BETWEEN THE COMMISSION AND MEMBER STATES DURING COMMERCIAL
NEGOTIATIONS.
FCO PLEASE PASS SAVING LISBON
HENDERSON
NNNN
SENT AT 261721Z JVGJYBSLSESENT AT 261721Z SJLE
RECD AT 2617212 DGB
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