environmental decisions had to be balanced by a softer line towards farmers. One device which might be adopted by opponents of price reductions was to abolish the basic co-responsibility levy for cereals, without the offsetting price cut which the United Kingdom had already urged should accompany such action.
In a brief discussion it was noted that any relaxation in reform would go back on a firm Community agreement and increase the United Kingdom's contribution to the Budget. The Irish Agriculture Commissioner could not be relied upon to stand firm. Some member
Governments would point to the fact that expenditure on agriculture
well below the ceiling, even though this was to a large extent
last year's drought in North America. Contact with other Dutch Ministers could be helpful in keeping the Netherlands Government to its traditional line. The German Government presented the biggest problem: apart from opposition to price cuts, Chancellor Kohl had recently urged the President of the Commission to abandon the commitment to phase out "green currencies" by 1992.
The Cabinet
Took note.
Cabinet Office
14 September 1989
CONFIDENTIAL CONFIDENTIAL
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