CONFIDENTIAL
6/14
UNITED KINGDOM DELEGATION
TO THE EUROPEAN COMMUNITIES.
28 rue Joseph II, Bruxelles, 4.
28 February, 1969.
UNCTAD Preferences
I reported in my letter of 21 February that the Committee of Permanent Representatives would be having a further discussion on the UNCTAD preference question on 27 February. There has, in fact, been a meeting this week of the working group, as well as that discussion. 2. The upshot is that the Belgians have not lifted their reserve on the Commission's proposals. They have stated that, in their view, the Community should not offer freedom of entry on all products, even with- in the quantitative limit envisaged by the Commission proposal. apparently envisage reduced depth cuts for certain sensitive products; and perhaps no cuts at all for some of the most sensitive. They have now, as was feared, rallied some support from the Italians; and they are being firmly supported by the Luxembourgers. It seems that Italian support has not been all that strong and Tran told me that the Commiss- ion are intervening with the Italians this week-end in an attempt to detach them.
now?
They
3. In any case the matter will not go to the Council on 3-4 March, wii this disagreement undecided. And the possibility cannot be excluded that agreement will not be reached on that occasion. The Germans, Dutch and French are standing firm behind the Commission proposal and are showing no inclination to compromise in order to get the Belgiona to lift their reserve.
4. I have been told by a member of the German Permanent Represent ation that there is one other point at issue which will be discuss:1 by Ministers and that ie the Commission proposal that duty free entry should be conceded for textiles only for thise beneficiary countri.s prepared to accept minimum prices for their exports. The Germans are contesting this and receiving some rather luke-warm support from the French. They do not seem to anticipate getting their way on this; nor making a sticking point of it at the Council.
(D. H. A. Hannay)
0. Kenmis Esq., Board of Trade P.H.R. Marshall Esq., UKMis Geneva
R.G. Btttten, Trade Policy Dept., F.C.0.
7. Goldsmith Esq., Board of Trade.
CONFIDENTIAL
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