259. Memorandum From the Special Representative for Trade Negotiations (Eberle) to the President’s Assistant for International Economic Affairs (Peterson)1

I have been advised by telephone that contents of the Commission’s proposed mandate for the EC Council to consider tomorrow is very limited. I have been assured by Renato Ruggiero 2 this is the best they can do and that we should not be too concerned because the important thing is to get the negotiations started so that they can go back for additional authority. Obviously there is extreme danger in this kind of a situation.

As I understand it, the proposed mandate to negotiate includes the following:

1.
The overall negotiation must be balanced and reciprocal.
2.
The items they want to discuss with the U.S. are:
a.
Our anti-dumping position
b.
Our agricultural quotas, particularly dairy
c.
Tariff increase on certain bound items
d.
Discriminatory prohibitions on products under the Sugar Act.
3.
The mandate provides negotiation for stocking grains only for the ′71-′72 season and not the next season.
4.
Other provisions of the mandate are:
a.
No authority to talk agriculture pricing but negotiation would be considered on limiting restitution payments and subsidy payments on wheat.
b.
No authority to grant MFN on citrus, but to extend present provisions for the next season subject to U.S. discussing chicken and lard subsidies.
c.
They see no issue on tobacco as it is not a problem at the present time (the proposed taxes are not imminent).
d.
Preferences—no authority, but will comply with GATT.
e.
Negotiation on solving distortions on present preferences—no authority.
f.
Notification on enlargement—will discuss with Council and advise specifically when notification will be made.
g.
′72 negotiations in GATT—authority to proceed.
h.
Multi-lateral discussions in ′73—authority to approve with some language changes.

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France has agreed to the limited mandate, reluctantly. Some of these issues may be taken to the Pompidou meeting.3

W. D. Eberle 4
  1. Source: Washington National Records Center, Department of the Treasury, Records of Secretary Shultz: FRC 56 80 A 1, CIEP (Peterson Executive Director). No classification marking.
  2. Chef de Cabinet of European Community Commission President Malfatti.
  3. President Nixon met with President Pompidou in the Azores December 13-14, 1971. Connally provided briefing material for the President at that Summit, including items on the trade negotiations. See Foreign Relations, 1969-1976, vol. III, Documents 219 and 220.
  4. Printed from a copy that bears this typed signature.