CONFIDENTIAL
16. In the absence of any specific Community proposals, there is a risk that the Community could lose the initiative and that those who favour an unchanged MFA (the US and the developing textile producers) would begin to dominate proceedings in Geneva. There is also considerable danger that those who want better protection in a new MFA (Canada, Australia, the Nordic countries and Austria) will become increasingly disheartened if the Community remains undecided. It is therefore highly desirable that the Council reach agreement on 3 May so that the Community should be in a position to present clearly defined proposals in Geneva very soon.
The Tactical Fosition at the Council on 3 May
17. It would be most desirable if the UK conditions for the acceptance of the Commission's proposals (paragraph 5) are recorded as agreed entries into the Council minutes. We should in any event seek to obtain association with it of the maximum possible number
of member states.
18.
In making the second point of the declaration we are concerned that it may become clear in the passage of time that the country-by- country approach inherent in the Commission's proposals is likely to entail some increase in the Community's offer to each supplying country. It may not then be possible to contain overall imports of the sensitive products more or less within the internal global import ceiling. In that case the Community must be aware that other measures may be needed to cope with the problem. This may include recourse
to Article XIX of the GATT.
19. We want to secure the inclusion of the words "at their present levels" (paragraph 8 above) in paragraph 1(i) of the Commission proposals. If this is not possible, ministers might consider other assurances which will satisfy them that the Council's intention is in fact to stabilise import penetration at present levels.
20.
It may emerge at the Counil that the Fren ch are the only member state reluctant to give up globalisation. It is possible they may put forward an idea which they have already floated very tentatively for some kind of "mini globalisation", This would mean the
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CONFIDENT I AT
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