BY BAG
FM FCO
UNCLASSIFIED
FRAME
SAVING TELEGRAM
PA
(MWE)
18-X11
TO UK REF BRUSSELS TEL NO.11 SAVING OF 14 DECEMBER 1973
My telegram No.1542:
Cotton Yarn Restrictions• HKK 6/5+8/17
Communication to the Commission of the EEC from the UK Permanent
Representation to the European Communities
UK import restrictions on cotton yarn
On 3 December the Council approved Document S/1325/73 (Comer 246 of 30 November) in which the Commission and the Member States set
out their views on the treatment that should be given, under the new multilateral multifibre agreement on trade in textiles, to existing quantitative restrictions. Although it is possible that the new agreement now in the final stages of negotiation in Geneva: will contain different provisions, the agreed view of the Community is that three solutions are possible:
1.
2.
3.
adoption of a programme of progressive liberalisation over a maximum of three years;
replacement of the restriction by a new bilateral agreement;
justification under the safeguard clause.
2. In the case of the existing UK restrictions on imports of cotton yarn, which apply to all countries of the world except the EEC, the Mediterranean associated states of the EEC, EFTA countries, Canada, the USA, Australia and New Zealand, the first solution
is appropriate.
3.
Accordingly, the UK proposes that these restrictions should be eliminated according to the following timetable:
1974 an increase of 25% over 1973
1975 1976
11
#1
11
#
It
50% 80%
11
11
#1
1977 no restrictions.
#.
The programme of liberalistion would not apply to imports of cotton yarn from state trading countries which would remain restricted in 1974 at the levels bilaterally agreed between the
UK and individual state trading countries, and thereafter would have to be considered in the context of the Community's commercial policy.
/ 5.
The
17