0003230
G.F. 323
CONFIDENTIAL
11
-
44.
In the matter of the duration of the Agreement, Dorward said that there appeared to be three possibilities :-
(e) 1st January 1971 to 30th September 1973
(b) 1st January 1971 to 31st December 1973
(c) 1st October 1970 to 30th September 1973
The first would be co-terminus with the extended C.T.A., but Hong Kong would not necessarily stand on principle in that regard and, if other terms were acceptable, an agreement could run for 3 calendar years as in (b). Dorward said he had already pointed out that practical difficulties would preclude an agreement being reached and implemented from 1st October. If, however, the E.2.C. felt strongly that this was the optimum starting date, it might be possible to reach an agreement retroactive to that date.
45.
Ernst said that the E.E.C. would favour starting an agreement from 1st October 1970 and would be amenable to finding solutions to any hardship cases that might arise as a result of retroactive implementation. As regards the existing Benelux and German Agreements, these could be subsumed into the new Agreement and the carryover provisions envisaged for the second and third years of the proposed Hong Kong/E.E.C. Agreement could be applied to quantities unshipped. Dorward noted these proposals.
46.
Dorward referred to the draft side letter containing the concentration provisions and providing for an automatic trigger mechanism. He said that following negotiations with the Benelux on a similar suggested provision, agreement had been reached instead on a system of export authorisations for basket categories. Dorward explained the workings of the export authorisation system and Ernst said he could accept this proposition in principle and asked for a full explanation of the system in writing. Dorward undertook to provide this.
47.
Ernst thanked Dorward for his constructive attitude and said he hoped that the consultations could be resumed in late September or October. In the meantime he would be grateful to receive the various documents which had been promised. He asked that these be sent as soon as possible so as to allow time for study by the Commission and reference to Member States. He in his turn would try to provide the factual justification for the E.E.C. request as soon as possible.
48.
Dorward thanked Ernst for his courtesy and expressed a wish that the next round of consultations should be held in Hong Kong. Ernst said that this would present very considerable difficulties for his side because although they had managed to hold this first round with only 3 officials present, for the final negotiation of an agreement it would be necessary to have present on the E.E.C. side representatives of all the Member States. This would be a very unwieldy number to transport around the world. There was, however, a possibility that following negotiations in Brussels in September, it would be necessary for the Commission to send a team to Tokyo in October to continue negotiation of an E.E.C./Japanese Trade Agreement. In such circumstances, it might be possible for the team to stop in Hong Kong en route.
49.
At this point Ernst left to join Dahrendorf and Hiizen in preparation for the Four-Power Meeting due to be held at the G.A.T.T. Secretariat the following day.
CONFIDENTIAL
/50.