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SAME REASON THEY INSISTED THAT AN ELEMENT IN THE AGREEMENT SHOULD
SE PROLONGATION OF THE COMMUNITY'S AGREEMENT WITH HONG KONG ON
COTTON TEXTILES TO THE END OF 1974 SO THAT BOTH AGREEMENTS WOULD TERMINATE ON THE SAME DATE (BOTH AGREEMENTS BEING SUBJECT TO
REVISION IF A SATISFACTORY MULTILATERAL SOLUTION WAS REACHED REFORE THAT DATE). THIS WAS AGREED AND THE DRAFT DIRECTIVES AMENDED ACCORDINGLY.
3. THE 1
THE ITALIANS SUPPORTED THE FRENCH VIEW THAT THE COVERAGE SHOULD BE WIDE, AND ARGUED THAT THE CRITERIA FOR SENSITIVITY
SHOULD TAKE ACCOUNT OF FACTORS OTHER THAN THE COST OF IMPORTS.
THE DUTCH SUPPORTED THE GERMAN VIEW THAT THE SENSITIVE LIST SHOULD
BE SHORT AND CONSIST ONLY OF HIGHLY SENSITIVE PRODUCTS. BOTH OF THE LATTER SAID THEY COULD ACCEPT A DRAFT SENSITIVE LIST (CONSISTING OF 9 PRODUCTS) CIRCULATED BY THE COMMISSION (COPIES WITH HOPE).
4. WE AND THE DANES RAISED THE QUESTION OF OUR EXISTING BILATERAL AGREEMENTS WITH HONG KONG BOTH ON NON-COTTON AND COTTONS. WE ASKED WHETHER IT WAS AGREED, AS WE ASSUMED, THAT OUR TRADE WOULD CONTINUE TO BE GOVERNED BY OUR BILATERAL AGREEMENTS. WE RECEIVED
NO CLEAR ANSWER BUT THE COMMISSION SAID THEY WOULD STUDY THE
QUESTION.
5. CN THE QUESTION OF THE BASE YEARS FOR CALCULATION OF QUOTAS, THE UK, GERMANY, BENELUX AND THE DANES WERE IN FAVOUR OF USING 1971/72, WHILE THE FRENCH, ITALIANS AND IRISH FAVOURED 1970/71/72. THE GEPMANS ARGUED THAT IT WAS EXTREMELY IMPORTANT FOR THEM TO
TAKE A REALISTIC BASE PERIOD IN VIEW OF THE POSSIBLE INFLATIONARY
EFFECTS OF FIXING QUOTAS AT TOO LOW A LEVEL. WE STRONGLY SUPPORTED THIS STAND. THE SAME SPLIT OF OPINION WAS EVIDENT ON
CROWTH WITH THE UK, GERMANY, BENELUX AND DENMARK FAVOURING A 5% GROWTH FACTOR WHILE THE FRENCH WANTED NO GROWTH FACTOR AND THE
ITALIANS AND TRISH RESERVED THEIR POSITIONS.
6. THERE WAS SOME DISCUSSION OF THE PROPOSED SAFEGUARD CLAUSE
WHICH IT WAS AGREED SHOULD BE ON THE LINES OF THE SAFEGUARD CLAUSE
PROVIDED FOR IN REGULATION 1325. THE EXISTING QUANTITATIVE
RESTRICTIONS (IE, THOSE CURRENTLY, APPLIED BY FRANCE) WOULD BE
SUSPENDED FOR THE DURATION OF THE AGREEMENT, SUBJECT TO THE
APPLICATION OF THE SAFEGUARD CLAUSE IF IT PROVED NECESSARY.
}
*
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