TNAG-0627-FCO40-775-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 167

French problem is dealing with the large and dominant suppliers

such as Hong Kong on whose imports they, unlike the UK, have

large growth rates under the Community's "burden-sharing formula".

I doubt if we can continue to count on French support when French

interests may be adequately solved by a relatively minor

redrafting of the Commission's existing proposals.

Indeed the

Commission's recent suggestion that their proposals will be put

for international approval in Geneva may be enough to rally the

French and others to a text which still does not meet our

requirements.

In the tactical circumstances that we may find developing very

rapidly next week, there could be a real danger that we might find

ourselves isolated in the Community in opposing the Commission

proposals. We would be wise to find a way to avoid this since we

would also be blamed in Geneva for refusing to allow the

Community to take up a position. This would make us unpopular

with the United States as well as with the developing countries.

Our tenure of the Presidency could help us to avoid these

dangers without compromising the protection we must achieve for

the British industry. We could do this by ensuring that the

Commission's paper is not the only text on the table in Brussels

as soon as it no longer becomes credible to continue pressing them

to improve it.

/I suggest