GRS5E0
PRIORITY
CYPHER/CAT-A~
FM UKREP BRUSSELS 161986Z
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FRAME EXTERNAL
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PA
TO PRIORITY FCO TELNO 6903 OF 16 NOVEMBER.
INFO UKHIS GENEVA AND WASHINGTON.
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COMMITTEE OF PERMANENT REPRESENTATIVES (AMBASSADORS): 16 NOVEMBER
EEC/US CONSULTATIONS
SUMMARY
1, SIR R DENMAN (COMMISSION) REPORTED TO THE COMMITTEE ON THE HIGH LEVEL EEC/US CONSULTATIONS HELD IN WASHINGTON ON 7/8 NOVEMBER.
DESCRIPTION
2.
DENMAN SAID THAT THE ECONOMIC SITUATION AND ENERGY MATTERS
HAD BEEN DISCUSSED IN PLENARY, AND TRADE ISSUES AND THE NORTH/SOUTH DIALOGUE IN SEPARATE GROUPS, APART FROM STEEL, ABOUT WHICH THE COMMITTEE HAD ALREADY BEEN INFORMED (MY TELNO 6741) AND THE MTNS (SEE MIFT), THE MAIN POINTS WERE THE ECONOMIC
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SITUATION AND TEXTILES. ON THE FORMER, THERE WAS AGREEMENT THAT THE PRESENT SITUATION ON BOTH SIDES OF THE ATLANTIC WAS BLEAK, ALTHOUGH ON THE US SIDE THERE WAS A HOPE THAT WHEN AN IMPROVEMENT CAMS IT COULD BE RAPID: AND ON THE COMMUNITY SIDE THE COMMISSION HAD POINTED-
TO A FALL IN INFLATION RATES AND AN IMPROVEMENT IN THE BALANCE OF PAYMENTS POSITION OF SOME MEMBER STATES. THE PRESENT SITUATION MADE IT ALL THE MORE IMPORTANT TO PRESS AHEAD WITH SUCH ACTION AS COULD BE TAKEN AGAINST PROTECTIONIST FORCES,
3. ON TEXTILES, THE COMMISSION HAD GIVEN THE AMERICANS A BRIEF ACCOUNT OF THE STATE OF THE BILATERAL NEGOTIATIONS IN BRUSSELS. THEY HAD ALSO MADE IT CLEAR THAT ANY INTERVENTION BY THE AMERICANS WITH THE COMMUNITY'S NEGOTIATING PARTNERS WAS UNHELPFUL. THE US
SI DE HAD TAKEN NOTE: THEY HAD POINTED TO THE RISK OF DOMESTIC. PRESSURES. IF THE COMMUNITY SEEMED TO BE GETTING A BETTER DEAL THAN THEY. THE TWO SIDES HAD AGREED TO REMAIN IN CLOSE CONTACT.
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