0003230
G.F. 323
CONFIDENTIAL
86.
committee.
87.
Seventh Working Session : 12.00 noon Tuesday
11th July, 1967.
The two sides met for the second occasion in drafting
Mr. Verhagen thanked Mr. Miller for having prepared second drafts of both the covering letter and the Memorandum. He stated that he had no further comments on the draft covering letter, but would wish to have a general consultation clause regarding trade in all cotton textile products added to the draft Memorandum.
He explained that this proposal was intended to cover a possible future approach by the Benelux Governments with a view to negotiating a comprehensive agreement with Hong Kong under Article 4. (He tentatively confirmed Mr. Miller's understanding that, having regard to the Benelux Government's juridical problem, any such future agreement on an Article 4 basis would also probably need to be in the form of a unilateral undertaking by Hong Kong. Developments in connection with the common commercial policy of the E.E.C. on imports of cotton textiles might change this attitude.)
88.
Mr. Miller saw some logical inconsistency in writing into an undertaking concerned with a few specified products a general consultation clause covering all cotton textiles, and wondered if such a clause might not instead be included in the covering letter, which specifically referred to future consultations on other commodities. He recalled that during the November negotiations Mr. Haddon-Cave had assured Mr. Stolp of the Hong Kong Government's willingness to consult with the Benelux Governments on trade in other commodities. Mr. Verhagen said he would, nevertheless, still prefer to see a general consultation clause included in the Memorandum. After discussion, it was agreed that such a clause should be added to the Memorandum.
89.
A minor textual amendment was agreed in paragraph 1 of the draft Memorandum.
90.
With the exception of these two amendments the second draft of the covering letter and Memorandum were accepted by both sides with reservations concerning the still unresolved question of flexibility.
91.
Mr. Miller said that, since no agreement had yet been reached on this difficult question, no further progress could be made with the drafting. He advised that the Director of Commerǝ and Industry intended to consult the Hong Kong Cotton Advisory Board on Wednesday, 12th July, at 11 a.m., and proposed that the negotiations should be resumed at 3.00 p.m. on that day in an effort to resolve the issue in the light of the Board's advice and the instructions he would by then have received from the Director. Mr. Verhagen accepted this proposal.
1
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Final Working Session : 3.15 p.m.. Wednesday.
12th July. 1967
92.
Mr. Miller reported that the Director had consulted the Cotton Advisory Board on the question of flexibility and had fully explained to members the doctrinal and practical difficulties which the Benelux side found in allowing flexibility across the board between the six categories of products, including shirts.
;
While
/the
CONFIDENTIAL