SERVICES
12. CONTINUING GULF BETWEEN HARDLINE LDCS AND DC PROPONENTS OF
SERVICES. US URGED THE PREPCOM TO FOCUS ON DRAFTING. THEY SOUGHT A
GENERAL FRAMEWORK OF LEGALLY-BINDING PRINCIPLES FOR SERVICES WHICH
MIGHT BE SUPPLEMENTED WITH SECTORAL SPECIFIC AGREEMENTS. OTHER DCS
(NORICS, EC, AUSTRALIA, SWITZERLAND) SUPPORTED. TRAN (EC) INSISTED
THAT PROPONENTS MUST PUT THEIR VIEWS TO THE MINISTERIAL: THE EC WOULD BE SUBMITTING A TEXT. HARDLINE LDCS, BRAZIL, INDIA, ARGENTINA, YUGOSLAVIA AND CUBA) RETORTED THAT NO DECISION ON THE
INCLUSION OF SERVICES IN THE NEW ROUND COULD BE TAKEN BEFORE THE
JARAMILLO GROUP HAD COMPLETED THE 1982 MINISTERIAL MANDATE.
JAPAN (BALANCE OF BENEFITS FROM THE GATT SYSTEM)
13. TRAN (COMMISSION) REPEATED EC CALL TO INCLUDE THIS AS A GENERAL OBJECTIVE FOR THE NEW ROUND. CHIBA (JAPAN) ARGUED THAT THE CONCEPT
OF A STRICT BALANCE OF BENEFITS IN GATT WAS FALSE. CONCESSIONS
NEGOTIATED ON A RECIPROCAL BASIS COULD NOT BE QUANTIFIED ON A STRICT
RATIO
BETWEEN IMPORTS AND EXPORTS. THERE WAS CONFUSION BETWEEN TEMPORARY
AND PERMANENT BENEFITS. US OBSERVED THAT THERE WERE OTHER
INEQUITIES (EG AGRICULTURE) WHICH ARGUED FOR A MORE EQUITABLE
SYSTEM.
#
14. HILL (JAMAICA) TOUCHED OBLIQUELY ON LDC GRADUATION SUGGESTING
THAT INTEGRATION INTO THE GATT SYSTEM WAS ALREADY OCCURING AS A
RESULT OF IMF/IBRD ACTIONS.
COMMENT
15. WITH THE COMPLETION OF PHASE TWO THE FOCUS MUST NOW BE UPON THE DRAFTING EXERCISE. DUNKEL APPEALED TO DELEGATIONS FOR FURTHER
CONTRIBUTIONS. IN ORDER TO BEGIN FORMAL DISCUSSION OF DRAFTS AT
THE NEXT SESSION OF THE PREPCOM ON 9-12 JUNE, THE INFORMAL PROCESS WILL NEED TO BE ACCELERATED. THIS MAY PROVE DIFFICULT, GIVEN THE ABSENCE OF MANY LDC AMBASSADORS IN BRASILIA FOR THE GSTP MEETING IN
MID-MAY. SECRETARIAT STAFF ARE BECOMING ACUTELY CONSCIOUS OF HOW MUCH GROUND HAS TO BE COVERED, BEFORE THE 18 JULY DEADLINE, GIVEN THE CONTINUING WIDE GAP BETWEEN DCS AND LDCS.
SANKEY
(ADVANCED AS REQUESTED)
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FRAME INTERNATIONAL AND AGRICULTURE
FCO PLEASE ADVANCE TO: WILLIAMS, LANE, MADELIN, COCKING, MAFF,
BRAITHWAITE, SHEPHERD, WARREN, FCO
GBL NAN 0816
INTERNATIONAL TRADE Y
FRAME AGRICULTURE
ECD (E)
ECD (I)
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