GR 365
IMMEDIATE
CYPHER CAT A
FM FCO 281400Z
CONFIDENTIAL
FRAME EXTERNAL
CONFIDENTIAL
HKK 120/616/11.A
2-
28
TO IMMEDIATE UKREP BRUSSELS TELEGRAM NUMBER 2004 OF 28/10
INFO PRIORITY BRASILIA
√273
NET REC'D
IN REGY
YOUR TELS NOS 6409 AND 6445 (NOT TO ALL)
TEXTILES: BILATERAL NEGOTIATIONS
LAST
273
R$
1. GRATEFUL IF YOU WOULD MAKE THE FOLLOWING POINTS TO COMMISSIONER
DAVIGNON TOMORROW MORNING, 29 OCTOBER.
2. THE UK IS MOST DISTURBED ABOUT INFORMATION REVEALED IN THE
ARTICLE 113 COMMITTEE OVER THE LAST FEW DAYS WHICH LEADS US TO
BELIEVE THAT THERE IS A REAL DANGER OF THE COMMUNITY'S INTERNAL
GLOBAL CEILINGS BEING EXCEEDED FOR CERTAIN GROUP 1 PRODUCTS, PARTICULARLY COTTON YARN AND COTTON CLOTH. THE COMMISSION CHIEF
NEGOTIATOR, MR TRAN VAN THINH, HAS SEEMED RELUCTANT TO REPORT BACK
TO THE COUNCIL FOR THE FRESH MANDATE WHICH WILL BE NEEDED AT LEAST
ON THESE TWO PRODUCTS. THIS IS A MATTER WHICH OUR MINISTERS WILL
VIEW WITH THE UTMOST SERIOUSNESS. THEY WILL UNDOUBTEDLY WANT IT DISCUSSED AT THE NOVEMBER FOREIGN AFFAIRS COUNCIL AND WE SHALL BE
RAISING IT AT THE NEXT MEETING OF COREPER DEPUTIES ON 4 NOVEMBER.
3. PRESSURE ON THE CEILINGS FOR THESE TWO PRODUCTS HAS ALREADY
BECOME EVIDENT FROM A NUMBER OF BILATERAL NEGOTIATIONS BUT THE MOST
IMPORTANT CASE BY FAR IS THAT OF BRAZIL. THE UK WAS ALWAYS OF THE
OPINION THAT THE OFFER TO BE MADE TO BRAZIL AND AGREED AMONG MEMBER
STATES DURING THE FIRST DIVISION OF THE GLOBAL CEILINGS BETWEEN
SUPPLYING COUNTRIES WAS TOO GENEROUS IN COMPARISON WITH THAT ON OFFER
FOR THE OTHER DOMINANT SUPPLIERS. THE COMMISSION ARE NOW PROPOSING
CONSIDERABLE INCREASES FOR COTTON YARN AND COTTON CLOTH FOR BRAZIL,
INCREASES WHICH IN THEMSELVES WOULD INEVITABLY CAUSE THE OVERALL
/CEILINGS
CONFIDENTIAL
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