RESTRICTED
11. THERE WAS A LENGTHY DISCUSSION ON PLY-WOOD. WE POINTED OUT THAT THE 1974 REGIME WHICH THE COMMISSION PROPOSED TO CONINUE IN 1975 WITH LITTLE CHANGE HAD PROVED QUITE INADEQUATE TO COVER OUR IMPORTS FROM THE COUNTRIES COVERED BY THE JOINT DECLARATION OF INTENT. THIS WAS WHY WE WERE SEEKING AN INCREASE IN OUR 1974 QUOTA, A BIGGER QUOTA FOR 1975 AND CONVERSION TO A VOLUME BASIS. WE GOT NO SUPPORT FROM THE COMMISSION. THEY CLAIMED THAT THE
MALAYSIANS WERE NOT PRESSING FOR AN INCREASE IN THE 1974 QUOTA AND THAT THE EUROPEAN PLY-WOOD, INDUSTRY WAS IN A DIFFICULT SITUATION
AND HAD MADE REPRESENTATIONS AGAINST GSP. CONVERSION TO A TONNAGE BASIS WOULD SET A PRECEDENT FOR INDEXATION IN THE INDUSTRIAL FIELD
TO WHICH THEY WERE OPPOSED. THEIR PROPOSAL FOR 1975 SEEMED TO THEM
THE ONLY POSSIBLE BASIS FOR A COMPROMISE SOLUTION. THE IRISH AND
DANES ALSO WANTED INCREASES IN THEIR 1974 QUOTAS AND WERE FAVOURABLE
TO OUR PROPOSALS FOR NEXT YEAR. THE GERMANS COULD ACCEPT OUR
聋
PROPOSALS FOR 1974 BUT WOULD NEED TO CONSIDER FURTHER THE FIGURES
WE HAD PROPOSED FOR 1975. THE FRENCH WERE OPPOSED TO OUR 1974 PROPOSALS ON GROUNDS OF PRINCIPLE (NO MID-YEAR CHANGE IN THE SCHEME).
THEY COULD ACCEPT THE COMMISSION'S PROPOSALS FOR 1975 BUT COULD
NOT GO BEYOND THEM. THE BELGIANS AND DUTCH WERE OPPOSED TO OUR
PROPOSALS FOR 1974 AND FOR 1975. THE ITALIANS WERE OPPOSED TO ANY
INCREASE IN 1974 BUT MIGHT BE SEEKING SOME INCREASE IN THEIR OWN
SHARE OF THE QUOTA FOR 1975.
12. MIFT DEALS WITH THE DISCUSSION ON FOOTWEAR AND MORE GENERALLY
ON HONG KONG. THERE WAS NO DISCUSSION ON JUTE AND COIR. ON TEXTILES
THE COMMISSION SAID THEY WOULD BE SENDING THEIR PROPOSAL TO THE
COUNCIL SHORTLY.
13. THE GROUP MEETS AGAIN ON 16 AND 17 OCTOBER. IT WILL GO OVER THE FIELD AGAIN AND WILL DEAL WITH THE PROBLEM OF CUMULATIVE ORIGIN
AND ROMANIA. IT WILL THEN REPORT TO THE COMMITTEE OF PERMANENT REPRESENTATIVES (AMBASSADORS) ON THE STATE OF THE DISCUSSIONS.
-14-
RESTRICTED
/FCO PLEASE