Summing up on the German proposals, the Chairman noted that agreement had been given to the suggested new levels of restraints on ceramics and on textile processing traffic with Jugoslavia. On wool and synthetic textiles. from the Far East, the FDR could regard consultations as being completed and there was no need for a submission to the Council. Submissions would, however, have to be made on the full liberalisation proposals and on cotton quotas (Group 1 as well as Group II as the whole package had not been agreed).
ITALIAN PROPOSAL TO INCREASE SYNTHETIC FABRIC IMPORTS FROM JAPAN
As the Italian delegate had left the meeting by the time this item was reached there was no discussion. However as the amount involved was minimal (only 3 tonnes) no objections were raised.
NEW FRENCH RESTRICTIONS ON SINGAPORE
Pownall spoke on the lines of FCO telegram to UKREP no 909 stressing that the UK was not objecting to or passing judgements on the French proposals. We had asked for consultations because we considered that, in view of the progress made in GATT discussions, the Community needed to consider new restraints against the safeguards envisaged in a new GATT textile agreement. France might well have considered all the relevant information before deciding to proceed against Singapore but, if time was needed
to review the data, we were content to return to the matter at a later date.
Freydrich commented that Germany would raise no objection to the French measures but thought that they would not help the progress of negotiations in Geneva.
The Chairman said somewhat cryptically that the Commission were considering whether a common import regime should be established for the products covered by the French proposal in relation to Singapore. However, he noted that there appeared to be a 50 - 50 division between Member States on this question. Kevers explained that France was concerned at the very rapid (and undeniable) rise in the rate of imports from Singapore, there was an apparent threat of disruption (i e a threat of a threat) and Singapore was acting commercially in a highly agressive way. Restraints had not yet been brought into force but the necessary legislative steps were now being taken in Paris. It would be difficult to produce all the relevant statistics along the lines suggested by the UK before the summer holiday because of the amount of work involved and staff shortages. From what he said, it was clear that France had simply acted on the basis of rising imports and that there had been no systematic consideration probably no consideration at all implications of further restraints,
of the wider
Pownall replied on the lines that the UK was not seeking to prevent France from acting speedily (we had no powers to do this anyway). The UK considered that the case should be reviewed against GATT criteria and we were content to revert to the matter at a later date after France had been allowed an appropriate time to assemble the necessary information.
FURTHER MEETINGS
the Since discussion of textile issues had taken almost the whole day, Commission announced that it would call a further meeting on Eastern Area policy questions (including German proposals to increase imports from the Eastern Area) on Friday, 13 July at 10 am in Room 70 of the Kortenburg Building.
3.