PRIORITY
CYPHER CAT A GPS 600A
FM UKREP BRUSSELS Ø32148Z
RESTRICTED
FRAME
RESTRICTED
1973
TO PRIORITY FCO TELNO 2270 OF 3 MAY/INFO PRIORITY TO HONG KONG
ROUTINE TO BRUSSELS, THE HAGUE, LUXEMBOURG.
HONG KONG TELEGRAM NO 428 TO YOU.
HONG KONG TEXTILES.
(64)
1. THE SOLUTION SUGGESTED IN PARA 4 OF HONG KONG TELEGRAM UNDER
REFERENCE - A BENELUX NEGOTIATION WITH HONG KONG - IS UNLIKELY TO BE POSSIBLE. COUNCIL DECISION OF 16 DECEMBER 1969 DOES NOT PERMIT
MEMBER STATES TO NEGOTIATE, WHETHER WITH OR WITHOUT THE, AUTHORISAT-
ION OF THE COUNCIL.
2. WHILE WE CAN AND SHALL CONTINUE TO POINT TO THE WIDER NEGOTIATIONS
IN WHICH THE COMMUNITY WILL BE INVOLVED FOLLOWING A NEW INTERNATIONAL
AGREEMENT ON TEXTILES (AS SET OUT IN PARAS 5 AND 6 OF HONG KONG
TELEGRAM UNDER REFERENCE) THIS DOES NOT ALLEVIATE WHAT BENELUX SEEMS
TO REGARD AS AN IMMEDIATE PROBLEM. WE SHOULD THEREFORE EXPECT
CONTINUING PRESSURE FOR ACTION IN THE WORKING GROUP.
3. THE CLASSIC COMMUNITY SOLUTION WOULD, AS INDICATED IN MY TELEGRAM
NO 1519, COMPRISE NON-RESTRICTIVE CEILINGS FOR REGIONS OF THE
COMMUNITY WHICH DO NOT CURRENTLY HAVE A PROBLEM OVER IMPORTS OF THE
TYPES OF GOODS CONCERNED. BUT THIS IS, OF COURSE, A STEP TOWARDS
COMMUNITY-WIDE RESTRICTIONS AND FACILIS DESCENSUS AVERNO.
4. IN PRINCIPLE, THE COMMISSION COULD NEGOTIATE AN AGRREMENT WITH
HONG KONG ON BEHALF OF BENELUX ALONE. SO FAR AS WE KNOW THERE IS NO
PRECEDENT FOR SUCH A NEGOTIATION AND THE RECENT COMMISSION ACTION
ON BEHALF OF ITALY IN CONNECTION WITH IMPORTS OF TAPE RECORDERS FROM
JAPAN IS NOT A CLEAR ANALOGY.
5. BENELUX COULD TAKE AUTONOMOUS MEASURES TO RESTRICT IMPORTS OF
ANY GOODS WHICH THE COMMUNITY HAS NOT LIBERALISED. IN ACCORDANCE
WITH ARTICLE 5 OF THE COUNCIL DECISION OF 19 DECEMBER 1972, SUCH
EXERCISE OF AUTONOMY IS ONLY POSSIBLE IF THE COUNCIL HAS NOT ISSUED
A MANDATE FOR NEGOTIATIONS - IT CANNOT BE EXERCISED SUBSEQUENTLY.
RESTRICTED
16.