"
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THAT THINGS HAD TO BE WORKED OUT BY THE JULY COUNCIL MEETING. HOWEVER, GIVEN THE DISTANCE BETWEEN THE PARTIES AT PRESENT, THEY DOUBTED WHETHER THE DEADLINE COULD BE MET. THE US WOULD NOT
MAKE EXCEPTIONAL CONCESSIONS TO MEET IT. ON THE OTHER HAND, AND IF PROGRESS WAS NOT ACHIEVED, THEY DOUBTED WHETHER THE MEXICAN AUTHORITIES WOULD BE ABLE TO STAVE OFF DOMESTIC POLITICAL CRITICISM OF GATT ACCESSION BEYOND THE END OF THE YEAR. THIS
PERHAPS POINTED TO NEGOTIATIONS THROUGH THE SUMMER REACHING A
CONCLUSION 4N, SAY, NOVEMBER.
6. BOTH STATE AND USTR THOUGHT THAT A NEGOTIATION STRETCHING
THROUGH THE GATT ROUND WOULD BE POLITICALLY UNSUSTAINABLE. APART FROM DOMESTIC MEXICAN POLITICAL CONSIDERATIONS, EXCLUDING SUCH A LARGE LDC FROM THE GATT WOULD PLAY VERY BADLY WITH
EXISTING GATT LDC MEMBERS. AND IN THE US THERE WAS THE RISK THAT
CONGRESS WOULD TURN ITS ATTENTION TO WHAT WAS PROPOSED, AND MAKE
A DEAL IMPOSSIBLE. THE US ATTACHED IMPORTANCE TO MEXICAN
ACCESSION, AND WOULD THEREFORE WORK HARD FOR A NEGOTIATED
AGREEMENT BY NOVEMBER.
COMMENT
7. USTR AND STATE WERE GRATEFUL TO HAVE A FRANK STATEMENT OF
HMG'S VIEWS, WHICH AT MOST POINTS ARE NOT FAR FROM THEIR OWN. HOWEVER, IT IS CLEAR THAT THEY DO NOT REGARD A VERY LONG NEGOTIATION, PERHAPS TAKING SEVERAL YEARS, AS A PRACTICAL PROPOSITION. THEY SAID THAT NO DECISIONS HAD YET BEEN TAKEN ON
WHAT THEY SHOULD DO IF THE MEXICANS FAILED TO MOVE SIGNIFICANTLY IN THE US DIRECTION. BUT OUR IMPRESSION IS THAT THEY WILL BE PREPARED TO SHOW SOME FLEXIBILITY IN ORDER TO ACHIEVE AN AGREEMENT.
8. FCO PLEASE ADVANCE TO:
JOHNSON, MADELIN
S
ECD(E),
WARREN ECD (E), FCO
WRIGHT
TP, DT:
INTERNATIONAL TRADE
ECD. (E) MCAD NAD
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(ADVANCED AS REQUESTED)