RESTRICTED

A SERIES OF LISTS OF COUNTRIES (O E C D (EXCLUDING JAPAN), CAIT GENERAL, E AREA, E GERMANY) TO WHICH PROGRESSIVELY TIGHTER RESTRICTIONS APPLIED. IN SOME CASES FRANCE HAD SPECIAL RELATIONS (EG WITH ISRAEL, TUNISIAI, LAOS, N AND S VIETNAM) WHICH LED TO THESE COUNTRIES BEING GIVEN SPECIAL QUOTA TREATMENT, LARGELY FOR

POLITICAL REASONS. IN PRINCIPLE IMPORTS FROM ANY COUNTRY WITH

WHICH FRANCE DID NOT HAVE A SPECIAL RELATIONSHIP WERE RESTRICTED

AND A LICENCE APPLICATION MIGHT BE REFUSED (THIS WOULD FOR EXAMPLE

APPLY TO AUSTRALIA) IN PRACTICE, IMPORTS MAY BE LICENCED

AGAINST SPECIFIC QUOTAS WHERE THESE HAVE BEEN OPENED OR AGAINST A

GLOBAL QUOTA BASED ON THE QUANTITIES WHICH FRANCE CONSIDERS IT

IS REASONABLE FOR HER TO ACCEPT FROM ALL RESTRICTED SOURCES.

IN LINE WITH OTHER COMMUNITY MEMBERS, FRANCE WAS WILLING TO SET

OUT THE DETAILS ON PAPER. THE ITALIANS EXPLAINED THAT THEY

DIVIDED NON-COTTON TEXTILE IMPORTS INTO THREE CATEGORIES: SILK PRODUCTS (RESTRICTED FROM ALL SOURCES EXCEPT EEC): A LIST (GATT EXCLUDING JAPAN) FOR WHICH THERE WERE NO RESTRICTIONS (SOME 10 HEADINGS FROM JAPAN RESTRICTED): B LIST (OTHERS) GENERALLY

RESTRICTED. BENELUX CONFIRMED THAT THEY OPERATED NO RESTRICTIONS

ON A LIST COUNTRIES OTHER THAN JAPAN.

3. TC START DISCUSSION OF A COMMON COMMUNITY LIST OF SENSITIVE

ITEMS, THE COMMISSION PRESENTED A TABLE OF IMPORT STATISTICS (REF 11/120/73-F) FOR POTENTIALLY SENSITIVE PRODUCTS IMPORTED INTO

THE COMMUNITY. THESE IMMEDIATELY CAME UNDER FIRE FROM FRANCE SAID

THEY INCLUDED RE-EXPORTS WHICH, IN THE FRENCH VIEW, MADE THEM

UNACCEPTABLE. THE BELGIANS DID NOT AGREE. AT A BELGIAN REQUEST

THE COMMISSION AGREED TO PRODUCE A BREAKDOWN OF IMPORTS BY FOUR -

FIGURE HEADINGS AND BY COUNTRY BUT THIS WAS LIKELY TO TAKE SOME

TIME.

4. FRANCE URGED THAT BEFORE CONSIDERING THE COMMISSION'SLIST

IF WAS NECESSARY TO DISCUSS PRINCIPLES AND TO RELATE THIS ASPECT

OF COMMUNITY TEXTILES POLICY TO WHAT WAS HAPPNEING ON THE GATT

FRONT. THE FRENCH AUTHORITIES THOUGHT THAT THE COMMUNITY SHOULD

INTRODUCE COMPREHENSIVE CONTROLS AND THEN ALLOCATE GENEROUS QUOTAS

FOR PRODUCTS WHICH WERE NOT CURRENTLY SENSITIVE SO THAT IMPORT

LEVELS COULD BE CUT BACK QUICKLY IN CASE OF NEED. THE COMMUNITY'S

PRESENT SAFEGUARD PROCEDURES FOR LIBERALISED PRODUCTS WERE

INADEQUATE. FRANCE WAS PARTICULARLY CONCERNED ABOUT IMPORTS

FROM MACAO, WHERE THE FLOW OF SOME ITEMS (EG MMF SHIRTS) HAD

REACHED WHAT THE FRENCH REGARDED AS INTOLERABLE LEVELS. THE

COMMISSION MERE PRESSED TO ASK THE PORTUGUESE COVERNMENT FOR

CONSULTATIONS WHICH, WHILE URGENT NEED NOT TAKE PRECEDENCE OVER

2 RESTRICTED

/GERMANY'S

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