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reform this side of a GATT agreement if one was reached this year. To make a GATT agreement dependent on CAP reform would push the whole process into 1992, when there would be no agreement because it was a US election year. Andriessen was on the right side of the argument within the Commission. He was not sure, for whatever reason, that M. Delors was actively engaged.
The
Mr Mulroney, commenting in passing on Mr Haughey's strong dislike of McSharry, said that Chancellor Kohl had told him a few weeks ago that there would need to be agricultural reform and that he would play a key role in achieving it. Mulroney had warned that if Kohl did not get involved the US would come down on him like a ton of bricks. The Americans had pulled out all the stops over unification and would not tolerate being messed about now. The French would soon find that the Americans had deeper pockets than they had. Senator Dole would produce legislation authorising US domestic agricultural subsidies which would boggle the mind. The mood of the Europeans, as he assessed it, was not just a non-response but a lot of hostility. French were effectively telling the Americans to go fly a kite. He hoped we would move towards trade liberalisation and that the Japanese would be part of that. The Prime Minister thought that the Japanese would move, but not in isolation. It would be very helpful if Kaifu would make that clear. That would leave Kohl in no position to do anything else but put pressure on Mitterrand. Mitterrand would find himself isolated in the G7 on arms control and on the GATT. The US would find themselves on their own on the environment. Mr Mulroney said he hoped that we would support the Canadians on the marine environment. The Prime Minister thought it would be in the US interest to move if they were not also to find themselves isolated on the environment, with Germany offering large sums of money up front on Brazilian rain forests. Mr Mulroney agreed, though he had been struck by the appalling economic state of East Germany on his recent visit there. Only 16 per cent of the population of Saxony had the telephone. Dresden's sewage went untreated into the Elbe. Kohl was in no position to write large cheques for the Brazilians.
The Prime Minister asked if Mr Mulroney would go to UNCED in Rio de Janiero. Mr Mulroney replied that he was supposed to go, but the environment was taking up more time than foreign policy and next June would be a crucial month for a final resolution of the Canadian constitutional issue, which was, incidentally, now looking much better.
South Africa
Mr Mulroney said he was not looking for an argument on the issue. Canada had signed on to Commonwealth commitments that there could be no change on sanctions until the Committee of Foreign Ministers so recommended. But he recognised that, if the European Community and Congress packed it in, then that would be that. He had told Anyaoku two weeks ago that the Commonwealth glory days on this issue were over. The issue of South Africa was a dying one, and Canada would not support the imposition of new conditions before sanctions were lifted. The Canadians had the impression that just as American politicians used to go in for one final election on the principle of 'one more for the
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