CONFIDENTIAL
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5. IF GENSCHER RAISES CSCE, YOU SHOULD STRESS THE
SIMILARITY OF OUR APPROACHES TO THE BERNE HUMAN RIGHTS MEETING,
AND NOTE THE EXTENSIVE CONSULTATIONS AT OFFICIAL LEVEL. WE SHALL
REMAIN IN CLOSE TOUCH WITH THE GERMANS IN THE RUN-UP TO VIENNA.
THERE ARE NO PARTICULAR POINTS TO RAISE ARISING FROM
DISCUSSIONS OF THIS SUBJECT IN LONDON ON 3 MARCH.
6. THERE ARE TWO POINTS WORTH MAKING TO GENSCHER ON THE
COMMUNITY:
A) WE ARE VERY GLAD THAT ALL TWELVE MEMBER STATES HAVE NOW BEEN
ABLE TO SIGN THE AGREEMENTS REACHED BY HEADS OF GOVERNMENT IN
LUXEMBOURG. WE SHALL BE AIMING TO ACHIEVE RATIFICATION BEFORE
THE SUMMER RECESS. WE HOPE THAT ALL MEMBER STATES WILL BE ABLE
TO RATIFY BEFORE THE END OF OUR PRESIDENCY. IF ASKED ABOUT
ADVANCE IMPLEMENTATION BEFORE RATIFICATION, YOU SHOULD SAY THAT (AS THE PRIME MINISTER PROPOSED AT MILAN) THERE SHOULD BE SCOPE ON A BEST ENDEAVOURS BASIS FOR MEMBER STATES NOT TO BLOCK ACTION
IN THE PURSUIT OF AGREED OBJECTIVES. BUT THE AGREEMENT WILL NOT
HAVE LEGAL EFFECT UNTIL IT IS RATIFIED.
B)
WE UNDERSTAND THE DIFFICULTIES IN AN ELECTION YEAR. BUT THE
COMMUNITY HAS TO GET TO GRIPS WITH THE PROBLEMS OF AGRICULTURAL
OVER-PRODUCTION AND THE COSTS THAT IMPOSES ON THE COMMUNITY BUDGET, CROWDING OUT EXPENDITURE IN OTHER AREAS LIKE RESEARCH AND DEVELOPMENT. WE ARE PARTICULARLY CONCERNED ABOUT CEREALS, WITH 17 MILLION TONNES IN STORAGE TODAY AND THE COMMISSION ESTIMATING
A SURPLUS OF 80 MILLION TONNES BY 1990. THIS IS NOT ONLY A
SERIOUS MISUSE OF RESOURCES: IT ALSO IS IMPOSING SERIOUS STRAIN
ON THE EC/US TRADE RELATIONSHIP. BECAUSE OF TECHNOLOGICAL PROGRESS, A PRICE FREEZE ALONE WILL NOT CUT PRODUCTION. IF THE WHOLE PRICE SYSTEM IS GEARED TO THE NEEDS OF VERY SMALL FARMERS, CAP COSTS CANNOT BE CONTROLLED. (ON ASSISTANCE FOR SMALL GERMAN FARMERS YOU SHOULD DRAW ON THE LINE IN THE SPEECH PREPARED ON THE
BRITISH VIEW OF THE COMMISSION'S GREEN BOOK).
7. WE AGREE YOU SHOULD RAISE ARMS SALES TO ARGENTINA (YOUR
TEL 179).
8. WE WOULD BE INTERESTED IN GENSCHER'S PRELIMINARY THOUGHTS ON
THEMES FOR HIS INFORMAL BILATERAL ON 12 APRIL WITH THE SECRETARY
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CONFIDENTIAL