20

12. The reference to as provided for in Article 3” includes the procedure pro- vided under paragraph 3 of Article 3. This means that if, following the consul- tation, an importing country extends the restraint to include the deliberately substituted product which is circumventing the restraint, the quantity of the sub- stitute product which has been imported since the day the request for consultation under sub-paragraph (b) of Article 6 is received will be counted against the speci- fied level for the corresponding cotton textile product for the twelve-month period concerned.1

ARTICLE 8

Sub-paragraph (c)

13. The major review to be held during the third year of the Long-Term Arrange- ment will be sufficiently broad to enable consideration to be given to the results achieved in the relaxation of import restrictions and the operation of the escape clause.

ARTICLE 9

14. Imports of hand-loom fabrics of the cottage industry referred to in this Article will be subject to a procedure of certification.

ARTICLE 12

15. The Committee noted the statement of the spokesman for the EEC that the Community's acceptance of the Arrangement will be dependent on the number of other countries which accept the Arrangement and the obligations thereunder.

ANNEX A

16. The spokesman for the European Economic Community informed the Com- mittee that the percentage to be included in Annex A for the Community as a whole would be calculated on the basis of a figure of 12,000 tons for total imports, during the last year of the Arrangement, of cotton textiles subject to quotas. It goes without saying that, in accordance with paragraph 3 of Article 2 of the Arrangement, due account will be taken of any liberalization measures which might have been introduced in the meantime. That would represent an annual increase of approximately 20 per cent over the minimum basic figure provided for 1962 under the short-term arrangement, which was 6,000 tons.

17. The spokesman for the European Economic Community stressed that the figure of 12,000 tons for imports of cotton textiles subject to quotas was the maximum figure which the Community could agree to write into an international arrangement of this type on cotton textiles, although the member States, while being unable to give any commitment in that regard, considered that that figure

1 While all members of the Committee remain determined to prevent deliberate substitution within the terms of Article 6 (b), some members have a different under- standing of the matter from that set out in this sentence. It has been agreed that the members concerned will consult together and report back to the Committee in due course.

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