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3.
Mr Hannay replied that it would be as well if
In
the Portuguese did not look for rapid progress on the
question of the inclusion of the escudo in the
calculation of the ECU since there were protracted
discussions underway in the Monetary Committee.
reply to a question Dr Marta said that the Portuguese,
did not intend to join the exchange rate mechanism when
they acceded but would, like the UK, keep the matter
under review. Meanwhile they were trying to travel
alongside. Mr Hannay said that as regards Japan, he
could understand why the Portuguese wished to have a
longer list, but it would not be easy to agree and he
could not offer much hope for compromise in Portugal's
favour. It was important that the Community should
have a common policy towards the Japanese rather than
continuing national restrictions, as in the case of
Italy and France. The Portuguese should stick to their
guns on VAT zero-rating. The UK would continue to
support the Portuguese case firmly and it really was
only the French, and to a much lesser degree the
Germans, who were standing out against the Commission
proposals. If the Portuguese indicated a willingness
to compromise too soon, then they would find that their
list of foodstuffs would be progressively whittled
down.
For that reason, it was in their best interest
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