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SHOULD LEAD TO ANY RELUCTANCE ON THE PART OF THE COMMUNITY TO
LIBERALISE RADICALLY THE SCHEME ON THE LINES WE HAD SET OUT. WE ADDED TWO FINAL POINTS. THE FIRST WAS THAT WE WOULD EXPECT A SUBST
TIAL IMPROVEMENT IN THE CONDITIONS OFFERED TO HONG KONG PARTICULARLY IN RELATION TO DISCRIMINATION AGAINST THEM IN THE TEXTILE AND FOOTWEAR SECTOR. (IT WAS MAINLY FOR THIS REASON THAT WE FOUND DIFFICULTY IN ACCEPTING THE COMMISSION'S PROPOSALS FOR SPECIAL ARRANGEMENTS FOR THE HIGHLY COMPETITIVE COUNTRIES). AND THE SECOND WAS THAT WE HOPED IN THE CASE OF JUTE THAT WE SHOULD BE ABLE TO
PROGRESS TOWARDS A ZERO TARIFF.
3. THE COMMISSION'S REACTION WAS GENERALLY POSITIVE. DETAILED POINTS
WERE:
A) ERNST SAID THAT THE COMMISSION WAS SENSITIVE TO THE NEED TO
DO SOMETHING FOR THE LEAST DEVELOPED ASIAN COUNTRIES. HE REFERRED TO CHEYSSON'S PROPOSALS AND TO THE DEVELOPMENT OF THE COMMISSION'S
THINKING TOWARDS ACCEPTANCE OF THE NEED TO NEGOTIATE TRADE AGREE-
MENTS WITH THE FOUR COUNTRIES OF THE INDIAN SUB-CONTINENT WHO HAD REQUESTED THEM. HE FELT THAT THE UK'S CASE FOR GREATER LIBERALISA- TION WOULD BE GREATLY STRENGTHENED IF WE COULD ADOPT THE COMMON
LIBERALISATION POLICY IN RESPECT OF COTTON YARN.
B) TRAN SAID THAT THE SAFEGUARD SYSTEM HAD BEEN CONSIDERED AT LENGTH WHEN THE COMMMUNITY HAD ADOPTED ITS G.S.P. SEVERAL YEARS AGO. THE COMMISSION'S VIEW WAS THAT SUCH A SYSTEM WOULD BE DIFFICULT TO CONTROL AND WOULD IN PRACTICE LEAD TO A PROLIFERATION OF RESTRICTIONS MALTZAHN SUGGESTED ONE WAY TO COMBINE OUR IDEAS WITH THE PROPOSALS PUT FORWARD BY THE COMMISSION WOULD BE TO DRAW UP A SAFEGUARD CLAUSE IN RELATION TO THE RE-IMPOSITION OF DUTIES WHEN CEILING WERE REACHED. THIS WOULD MEAN THAT MEMBER STATES SEEKING RE-IMPOSITION OF DUTIES
WOULD NEED TO JUSTIFY THEIR DEMANDS.
C) ON HONG KONG TRAN POINTED OUT THAT UNDER THE COMMISSION'S PROPOSALS THERE WOULD BE NO REDUCTION IN THE BENEFITS ACCRUING TO THE HIGHLY COMPETITIVE BUT ONLY A STANDSTILL. FOR SOME PRODUCTS, IN RETURN HE THOUGHT THERE MIGHT BE A POSSIBILITY OF REMOVING DISCRIMINATION AGAINST HONG KONG ON FOOTWEAR. ON TEXTILES HE DID NOT FORSEE ANY POSSIBILITY OF MOVEMENT EXCEPT IN THE CONTEXT OF NEGOTIATIONS FOR
THE NEW BILATERAL AGREEMENTS.
4
ON PROCEDURE THE COMMISSION TEAM SAID THAT THE BEST WAY TO HANDLE OUR REQUESTS WOULD BE FOR COREPER TO GIVE A MANDATE TO THE WORKING GROUP ON GENERALISED PREFERENCES TO WORK OUT MEANS OF SUBSTANTIALLY REDUCING THE RESTRICTIVENESS OF THE SYSTEM. THE FIRMER THE STEER WHICH COULD BE GOT IN THESE TERMS OF REFERENCE, THE EASIER OUR TASK
WOULD BE
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15.