THE 113 COMMITTEE CONCLUSION, NEVERTHELESS CONVEYED A CLEAR SIGNAL THAT THE EC REGARDED 147,REV.2, AS THE ONLY VIABLE BASIS FOR NEGOTIATION AT PUNTA DEL ESTE. THIS INTERVENTION WENT A LONG WAY

TO RESTORING TRAN'S CREDIBILITY AS EC NEGOTIATOR, AND, BY

1

IMPLICATION SOME CREDIBILITY TO THE EC ITSELF, OSEPITE THE

PUSILLANIMITY OF SOME MEMDER STATES.

12.

THE GENRAL READINESS OF CPS FINALLY TO AGREE UPON THE STATUS OF

THE MINISTERIAL MEETING REFLECTED THE NEUTRALISATION OF THE

HARD-LINERS OVER THE PAST MONTHS AND THE GENERAL UNDERSTANDING THAT

NON-TRADITIONAL SUBJECTS WILL HAVE TO BE DISCUSSED AT PUNTA DEL

ESTE, WHATEVER THE NATURE OF THE MEETING.

13. THE COMMUNITY'S UNREALISTIC PROPOSAL TO REOPEN THE NEGOTIATIONS IN, THE PREPCOM WAS GIVEN SHORT SHRIFT BY OTHER PLAYERS IN THE

NEGOTIATING PROCESS, WHO DEMONSTRATED CLEARLY THAT THEY HAD NO INTENTION OF BEING BLOWN OFF COURSE AT THIS LATE STAGE BECAUSE OF EC

INTERNAL WRANGLING.

14.

THUS THE MAIN ODJECTIVES OF THE PROCESS WHICH BEGAN IN THE

EIGHT DWARFS CROUP SOME MONTHS AGO HAVE COME TO FULFILLMENT.

SUCCESSIVE NEGOTIATING PROCESSES HAVE PRODUCED A CENTRAL TEXT WHICH, DESPITE ITS IMPERFECTIONS, OFFERS THE ONLY VALID BASIS FOR FUTURE

DISCUSSION AND NEGOTIATION. DESPITE THE GENERAL COMMITMENT OF ALL

INVOLVED NOT TO UNRAVEL W47, REV.2, THE AGRICULTURAL SECTION IS

CLEARLY THE MOST LIKELY TO BE REOPENED, SINCE IT APPEARS TO SATISFY

NO-OME. NEVERTHELESS, GIVEN THE OPPOSITION TO THIS SECTION FROM BOTH

AUSTRALIA AND FRANCE FROM OPPOSITE EXTREMES, THE PRESSURES FOR

CHANGE SEEM LIKELY TO CANCEL ONE ANOTHER OUT AND WE MAY WELL END UP

WITH A TEXT LITTLE DIFFERENT FROM WHAT WE HAVE NOW.

15.

>

ALTHOUGH THE PREPCOM HAS COMPLETED ITS WORK, THE POSSIBILITY

EXISTS FOR SOME FURTHER CONTACTS AND EVEN PRE-NEGOTIATION IN EARLY

SEPTEMBER. DUNKEL IS THOUGHT TO BE CONTEMPLATING A HIGH LEVEL

MEETING DEFORE PUNTA DEL ESTE. FUTURE DEVELOPMENTS MAY WELL DEPEND

UPON TRAN'S CONTINUING CONTACTS WITH THE HARD-LINERS, DESIGNED TO STRIKE A COMPROMISE ON THE HANDLING OF THE NON-TRADITIONAL SUBJECTS.

HE PLANS TO RESUME THESE DISCUSSIONS WITH BATISTA AND SHUKLA FROM 26

AUGUST. (NOW SEE MIFT)

SANKEY

YYYY

BARE INTERNATIONAL TRADE

FCO PLEASE ADVACHE TO WILLIAMS, JOHNSON, LANE AND MADELIN, DTI, BRAITHWAITE, SHEPHERD AND WARREN, ECD(E), FCO, AND COCKING AND HEDLEY MAFF.

GBLAAN

(ADVANCED AS REQUESTED)

KNNN

INTERNATIONAL TRADE

ECD (E)

COPIES TO.

ADVANCE ADDRESSE.

ssco's

CONFIDENTIAL

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