RESTRICTED
LIMITATIONS. THE FRENCH SAID THAT THEY WOULD HAVE DIFFICULTIES
O THE INCLUSION OF HONG KONG FOR FOOTWEAR, WE SAID THAT THE 0"
FIGURES PROPOSED BY THE COMMISSION DISREGARDED THE AGREED BASIC
PRINCIPLES IN SOME CASES AND WERE SIMPLY A.FIXED PERCENTAGE
INCREASE ON 1974. WE PRESUMED THAT IN THEIR FORMAL PROPOSALS THE
COMMISSION WOULD BE PREPARED TO REVERT TO THE PROPER BASIS.
6. THERE WAS SOME DISCUSSION ON THE PROVISION OF A COMMUNITY RESERVE
FOR PRODUCTS REMAINING ON THE SENSITIVE LIST, (1.E. A PART OF
THE QUOTA WHICH IS NOT SHARED OUT AMONG MEMBER STATES BUT ON WHICH
THE LATTER MUST DRAW WHEN THEIR NATIONAL SHARE IS EXHAUSTED).
THE DUTCH SAID THEY COULD NOT AGREE TO A RESERVE UNTIL THE IMPORT
FORMALITIES IN MEMBER STATES HAD BEEN HARMONIZED. THE COMMISSION
SAID THE COUNCIL HAD ALREADY AGREED THAT THERE SHOULD BE A
COMMUNITY RESERVE IN 1975. WE SAID WE SUPPORTED THE IDEA OF
COMMUNITY RESERVE.
7. TRAN (COMMISSION) SAID THAT ALTHOUGH THE COMMISSION DID NOT
INTEND TO INVITE FURTHER DISCUSSION WITH THE MEMBER STATES COLLECT-
IVELY BEFORE FORMULATING A PROPOSAL FOR THE COUNCIL, IT WOULD
WELCOME ANY COMMENTS MEMBER STATES WANTED TO GIVE BILATERALLY
E.G. DUNING CONTACTS AT THE UNCTAD IN GENEVA NEXT WEEK.
ན
8. SE MY I.P.T.
FCO PSE PASS ADVANCE COPY TO
FCO- BUTLER HART
CABINET OFFICE • CUBBON
DEPT OF TRADE DENMAN
HIGRAMS
MAFF SMITH VICKERY
CUSTOMS AND EXCISE - ABBOTT
ODM RADFORD
FCO PSE PASS SAVING BONN COPENHAGEN BUBLIN PARIS AND ROME,
PALLISER
[ADVMUND AS RYUESTED] TREEMAINED AS REQUESTED]
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