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DESKBY 230708Z
RE
TO IMMEDIATE UKREP BRUSSELS TELNO 1414 OF 22 JUNE
RESVED IN
RES
24 JUNIY77
HKK 121/616/
INFO IMMEDIATE UKMIS GENEVA PARIS BONN (DESKBY TO ALL) ROUTINE UK DIRECTOR IMF/IBRD WASHINGTON BRUSSELS COPENHAGEN DUBLIN THE HAGUE LUXEMBOURG ROME.
TEXTILES: FRENCH GATT ARTICLE XIX PROPOSALS
OBJECTIVE
1. TO ENSURE THAT AS FEW AS POSSIBLE OPTIONS FOR UK ACTION ARE
CLOSED.
LINE TO TAKE
2. THE UK AND OTHER MEMBER STATES WOULD CLEARLY NEED TIME TO
DIGEST PROPOSALS PUT FORWARD BY THE COMMISSION ON BEHALF OF FRANCE
OR ON BEHALF OF THE COMMUNITY AS A WHOLE. WE CAN THEREFORE GIVE NO
COMMITMENT AND WILL NEED TO CONSULT UK MINISTERS.
3. NEVERTHLESS, WE CAN MAKE CERTAIN PRELIMINARY OBSERVATION. THE UK IS MOST CONCERNED ABOUT ANY PROPOSAL FOR ACTION UNDER GATT ARTICLE XIX, WHICH WOULD INEVITABLY APPLY TO DEVELOPED COUNTRIES.
SUCH ACTION WOULD RAISE THE MOST SERIOUS PROBLEMS AND WE SHOULD
GIVE IT VERY CAREFUL THOUGHT.
4. WE RECOGNISE THE FRENCH DIFFICULTIES, MANY OF WHICH ARE EVEN GRAVER IN THE UK. IF MEASURES HAVE TO BE TAKEN, SUBJECT TO CLOSE EXAMINATION, THEY SHOULD (PROBABLY) BE ON A COMMUNITY-WIDE BASIS,
RATHER THAN JUST FOR FRANCE. WE SHALL HAVE TO EXAMINE WHETHER THE
METHODS PROPOSED ARE THE BEST FOR THE COMMUNITY OR INDEED FOR
FRANCE. WE SHALL ALSO NEED TO LOOK AT THEIR PRACTICAL IMPLICATIONS
FOR THE UK, NOT LEAST OVER DEFLECTION OF TRADE AND AT THE PROBLEMS
CREATED FOR MORE GENERAL RELATIONS WITH CERTAIN OF THE PRODUCERS.
5. WE ARE NOT OPPOSED IN PRINCIPLE TO ACTION AGAINST DISRUPTIVE
IMPORTS FROM COUNTRIES WITH WHOM THE COMMUNITY HAS PREFERENTIAL
AGREEMENTS. BUT AGAIN, THE METHOD, SCOPE AND EFFECT OF SUCH ACTION
WILL NEED TO BE CAREFULLY EXAMINED.
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