CONFIDENTIAL
could not expect to take lying down the proposals they were now making. Genscher agreed with enthusiasm. The British and German position would be weakened by the US proposals now on the table. The admission of Spain to the Community had been a political not an economic decision. If Spain had not joined the EC, she would not have stayed within NATO either. It was surely to be expected that al1 NATO Member States should make a contribution to cover the political costs of bringing Spain into the EC. The FRG for its part would be paying some DM2 billion to that end. The Germans therefore wanted the Commission to negotiate toughly with the Americans, while avoiding "blows in public".
9.
The Secretary of State then spoke on normal lines about the CAP. He understood the importance of the farm vote for the Germans; it was important too in the UK. But the situation was now out of hand. It was particularly absurd that sale of surplus products to the Soviet Union were still being made on a large scale (Genscher interjected that he heard the same point all the time from his constituents). Genscher showed evident interest in the subject, but asked what we thought provided the right answers. The Secretary of State said that action on the price front was clearly important, while we were also looking at ways of taking land out of production. He handed over a copy of the paper prepared in advance by ECD (I). Referring to paragraph 3 in that paper, Genscher commented that the Community was at fault in eroding the structural position of many agricultural exporters in the Third World.
10. Genscher then went on to talk about work underway in the FRG concerning possible industrial utilisation of agri- cultural raw materials, eg in the production of petrol. He did not know whether disposing of surpluses in that way would be any less expensive, but at least it would not create problems for world trade. The Secretary of State mentioned forestry as another possible, albeit long term, partial solution. Genscher noted that a truly rigorous price policy would lead to political trouble in the FRG. That was why his government preferred to refer to the need for a cautious price policy.
11. Turning to the proposed POCO Secretariat, the Secretary of State suggested (Genscher agreed) that the proposal for a permanent staff should be settled during the Dutch informal weekend meeting for Foreign Ministers. He asked if there was a German candidate for the post of Head of the Secretariat. Genscher indicated that no thought had yet been given to that in Bonn.
- 3 -
CONFIDENTIAL
/12.
No comments yet.
Private notes are available after approval.