DSR 11C

not only by what our EC partners will agree but also by

what the US will want. Though some EC partners may

favour continued protectionism, the risk of added EC/US

friction is there. Any EC position must take account

of the prevailing protectionism tendencies in the US; we

can expect strong views there against greater

liberalisation at present, and the Community will need to

work with those like Smith (USTR) who seem to favour a

gradual opening.

The

6. The alternative will be conflict with the LDCs and

NICS at a very inopportune moment in the preparations for

a new GATT round of multilateral trade negotiations.

paper might therefore bring out more clearly the link

between our tactics and strategy on the MFA and our

campaign for a new GATT round, not least because the LDCs -

themselves recognise that liberalising the MFA is one of

the few cards we can play to get the LDCs to agree to

what we want in the GATT.

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