TNAG-1494-FCO40-2052-Future-of-Hong-Kong-General-Agreement-on-Tariffs-and-Trade-(-1986 — Page 12

CONFIDENTIAL

MEXICO AND JAMAICA. A SWISS TEXT CONTAINING THE OUTLINES OF A MECHAMUSM (MUFAXED TO MADELAIN) WAS REJECTED TODAY BY AMBASSADOR BATUSTA (BRAZIL) WHO HAS PROMISED TO TABLE HIS OWN PROPOSAL (DRAFT. MUFAXED TO MADELIN) AT AN 0800 MEETHING TOMORROW.

4. THE SMALLER DEVELOPED AND MIDDLE LOCS (ESSENTIALLY THE CORE OF W47 GROUP) ARE BECOMING INCREASINGLY EXASPERATED. THEY HAVE TARGETTED CRUCISM AT THE EC FOR APPEARING TO STAND TOO MUCH WITH BRAZIL, AND ON THE US FOR FAMLING TO DEMONSTRATE THE POSITIVE ATTITUDE WHICH WAS A FEATURE OF THEIR PRE-PUNTA POSUTION. N COMMUNITY COORDHINATION TRAN HAS DEFENDED HIS TACTICS BY STRESSING

THE NEED TO NEGOTIATE A CAREFULLY STRUCTURED SURVEILLANCE MECHANISM. HE THEREFORE SHARES BRAZIL'S PRE-OCCUPATION WITH SURVEILLANCE WHILST NOT NECESSARILY AGREEDING WITH THE SUBSTANCE OF THEIR PROPOSALS.

COMMENT

5. THERE IS STILL A SIZEABLE GAP TO BE BRIDGED. WITH THE US KEEPUNG A LOW PROFULE (STULL AVAUTING BASTRUCTIONS FROM WASHINGTON, ACCORDING TO TRAN) AND BRAZEL DISPLAYING A FAMILIAR MINXTURE OF OBSTRUCTION AND FOOT DRAGGUNGU LIT: (IIS POSSIBLE THAT A FURTHER MEETHING OF GNG WILL BE NECESSARY IN ORDER TO SET UP THE ORGANISATIONAL FEATURES OF THE URUGUAY ROUND.

MOSS

YYYY

FRAME UNTERNATIONAL TRADE GBLNAN 1936

INTERNATIONAL TRADE

ECDCE)

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CONFIDENTIAL

REPEATED AS REQUESTED