3.

The Community is near agreement on a mandate on which

the Commission will speak in Geneva.

to receive final approval very soon.

We expect that mandate

Until it does so, it

would not be appropriate to reveal the details of the

Community's negotiating mandate.

4.

The French announcement of GATT Article XIX measures

on four sensitive items (mens shirts, ladies blouses,

T-shirts and cotton yarn) came as a surprise to us too. It

remains to be seen how the Community will deal with this and

how it will affect the Community's relations with its textile

suppliers. The French action is a further indication of

the Community-wide problem which exists in the textile

industry.

BACKGROUND

5. The Community's negotiating mandate on cumulative

disruption involves the drawing up of "internal global

import ceilings" for a limited number of sensitive products.

The Community intends to negotiate new bilateral textile

agreements before the existing ones expire, with the existing

MFA, at the end of this year. The totality of import

quotas for these sensitive products will not be allowed by

the Community to exceed the internal global ceiling. The

Desire not to have a major revesolution of Community's intention is not to renegotiate the MFA to

allow this procedure but to state its position in Geneva

Cent

d work for the approval of other parties to the MFA

without renegotiation if possible. But some of the

But

So for as I know,

Community's other proposals, involving the reduction of growt

rates below the 6% prescribed in the existing MFA in situations

of high import penetration, may call for renegotiation?

5. The mandate has now been approved by all Member States

at COREPER level and it is expected that the Foreign

Affairs Council on 21 June will give its approval without

/discussion.

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