Nov 28, 1984

"WE CANNOT NEGOTIATE UNDER THREAT" – BRAZIL-

GENEVA, NOVEMBER 27 (IFDA/CHAKRAVARTHI RAGHAVAN) -- Negotiations in GATT could only be on basis of good faith and understanding, and Third World countries were not prepared to negotiate on the basis of linkages and threats, the Brazilian Ambassador to GATT, Paulo Nigeria Batista told a news conference Tuesday.-

Batista was replying to questions about U.S. seeking to establish linkage between progress on the services issue with other work in GATT, and the further reported threat that it might withhold its budget contribution for 1985.-

Western media reports Tuesday had quoted the U.S. representative Michael Smith as having said that the U.S. would have to seriously consider its position on the payment of its about 15 percent contribution to the 1985 GATT budget, if there was no satisfactory outcome on issues of concern to it like the services issue.-

An U.S. spokesman however denied that Smith had made such a statement but added "we have no problem with the GATT budget so long as it reflects the work programme".-

This clarification however appeared to refer to the U.S. view that the budget should reflect any satisfactory outcome in the work programme on the services issue.-

Batista however indirectly confirmed that the U.S. had sought create a linkage between services issue and other items on the agenda of the GATT Contracting Parties, which includes the budget for 1985.-

However, he said, the U.S. had not specifically told the Third World negotiators that it would withhold its budget contribution if it did not get its way on the services.-

"We would never negotiate in such a situation with such linkages", Batista said. "We negotiate in GATT on the basis of good faith and understanding. People should be ready to defend their national interests, but in doing so they must take into account the views of others. GATT cannot work on the basis of majority decision. We want decisions with the participation of all".-

Asked whether the U.S. had not in fact in its comments in the GATT Council established a linkage between the services issue and other parts of the work programme, and had not accepted the GATT budget for 1985, Batista said that on the budget in the Council the U.S. had said "they have technical problems to be solved".-