CONFIDENTIAL
On the basis of that assessment the Community would take simultaneous action against all supplying countries contributing to market disrup- tion for those sensitive products.
13. The draft has been discussed with officials from the DOI, the DOT and the Cabinet Office. They believe it would produce an effective solution to the problem of cumulative disruption and that `it would be presentable to the British industry as providing the
protection they need. They have also accepted that, even if a globalisation clause were secured in the MFA, some proposal on these lines would in fact be the way in which the Community would implement it. The essential difference is that this Presidency position would be presented in Geneva, not as a change to the MFA but in the less contentious form of a Community interpretation of the provisions of the existing MFA, ie on the same terms in which the Commission have now said they would present their paper (see para 7 above). It has a chance of gaining US support in Geneva.
14.
In order to gain the maximum advantage, the UK should be ready to present this proposal from the Chair in Brussels at the right moment, ie before the French and others indicate openly that they are prepared to accept something on the lines of the Commission's existing proposals, but as soon as it had become clear that the majority in support of a globalisation clause were no longer solid. It would be too late to present it as a credible Presidency compromise if a majority had emerged in favour of the Commission's paper. The proposal may be needed as early as COREPER on 30 March.
15.
I recommend
(a) that the item be kept on the agenda for 5 April (b) that the Secretary of State write to Mr Valey in
the terms of the attached draft letter.
26 March 1977
cc:
PS/PUS
Mr Butler
Mr Fretwell
Mr Mellon, TRED
Arbuthutt
H J Arbuthnott
European Integration Department (External)
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