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All of these quotas are likely to be increased, and H. Baudry thinks that the average increase will probably be about 10.
(f).
Liberalisation is also being discussed in Tokyo and it is virtually certain that some further positions will be liber- alised. He was not sure how many, but he thought it might be between 7 and 10.
3. So far as the question of safeguard clauses is concerned, 1. Baudry explained that the clause is written into the 1963 Trade Agreement, and does not need to be reincluded in the Frotocol each year. In fact it does still apply, and the French intend to resist Japanese efforts to have it deleted. Apparently only two of the Common Market countries, France and Belgium/Luxembourg, have safeguard clauses in their agreements with Japan, and the Japanese have refused to
No-one is quite accept such clauses with Italy and Germany.
sure what will happen on 1 January 1970 when the Common Commercial Folicy is supposed to come into operation, but in the meantime the French are hanging on to their safeguard clause as a useful bargaining point. It might well be that at that tile the Community countries would accept the watch list system to which you refer.
4.
In asking for this information, I told F. Baudry that we were preparing for our next meeting with the Japanese, and he expressed an interest in hearing about the results of this
Perhaps you could bear this last request meeting in due course. in mind and let us have some information for forwarding later in the year.
Yours sincerely,
Peter Holmes
(P. R. Holmes)
CONFIDENTIAL
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