CONFIDENTIAL
for stronger dispute settlement.
The Prime Minister might draw on the following:
GATT Uruguay Round rightly a high priority for
Summit. Believe EC and US will resolve differences
over the form of commitment we should make on
agriculture.
Recognise Japanese concerns on rice. Not really
addressed so far. But we must all be ready to make
commitments to reduce support and protection if we
are to produce a credible result, in line with the
commitments we made at the start of the Round.
There can be no special cases.
Welcome US willingness to confirm their commitment
to use only multilateral routes for dispute
settlement if GATT rules are strengthened. We must
now work for a dispute settlement agreement in the
Round strong enough to hold the US to this
commitment. Japan, as a target of US unilateral
action, stands to gain. Hope Japanese will continue
to support strong dispute settlement as an aim of
the Round.
South Africa
The Japanese acknowledge change is taking place in
South Africa but are being very cautious in their
response. They will make no move to relax sanctions
CONFIDENTIAL
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