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(D)
THE COMMISSION WOULD ATTEMPT TO RESOLVE THE BILATERAL NEGOTIATIONS AS SOON AS POSSIBLE, PROBABLY NEGOTIATING WITH SEVERAL EXPORTERS AT ONCE. THEIR AIM WOULD BE THE STABILISATION OF IMPORTS AT 1976 LEVELS. THIS MIGHT WELL INVOLVE CUTTING BACK IMPORTS FROM SOME DOMINANT SUPPLIERS.
DAVIGNON SAID THAT AFTER TALKING TO MR STRAUSS, THE US SPECIAL TRADE REPRESENTATIVE, HE WAS ASSURED OF US SUPPORT IN THIS APPROACH. BOTH THE US AND THE MAJOR PRODUCERS WERE AWARE THAT IF THE APPROACH BROKE DOWN, THE COMMUNITY WOULD TAKE ACTION UNDER GATT ARTICLE XIX, THE US WOULD BE OBLIGED TO FOLLOW SUIT, AND THIS WOULD LEAD TO THE BREAKDOWN OF THE MFA, CAUSING SEVERE DAMAGE TO THE PRODUCERS, THE COMMUNITY THUS HAD A MAJOR DETERRENT IN ITS HANDS, THE CREDIBILITY OF WHICH WOULD BE CRITICAL TO THE CONCLUSION OF SUCCESSFUL BILATERALS.
2. MR DELL STRESSED THE UK'S POLITICAL PROBLEM AND THE NEED TO REASSURE THE TEXTILE INDUSTRY. HE SAID THREE POINTS WERE ESSENTIAL FOR THE UK :
(A)
THAT THE BILATERAL AGREEMENTS SHOULD REFLECT THE COMMUNITYS MANDATE IN FULL AND IN DETAIL:
(B)
BILATERAL CEILINGS SHOULD BE WITHIN THE COMMUNITY'S INTERNAL GLOBAL CEILINGS AND STILL LEAVE ROOM FOR NEWCOMERS AND SMALL SUPPLIERS ↑
(C)
THE COMMUNITY WOULD NOT RENEW THE MFA IF ITS OBJECTIVES WERE NOT FULFILLED.
HE SAID THAT WITH SUCH A MAJOR POLITICAL ISSUE, HE COULD NOT NOW APPROVE THE COMMISSION'S APPROACH AND WOULD NEED TO CONSULT HIS MINISTERIAL COLLEAGUES. THE GOVERNMENT WOULD NEED TO MAKE A PUBLIC STATEMENT AT SOME STAGE TO THE BRITISH TEXTILE INDUSTRY EXPLAINING THAT ITS INTERESTS WOULD BE FULLY PROTECTED. MR DELL STRESSED THAT PARAGRAPH & WAS THE KEY PART OF THE TEXT AND MUST MAKE CLEAR THAT THE COMMUNITY WOULD NOT SIGN A RENEWED MFA WITHOUT FULL SATISFACTION.
3. DAVIGNON SAID HE WOULD BE HAPPY TO CONSIDER UK DRAFTING SUGGEST- IONS AND WOULD BE PREPARED TO MAKE A PUBLIC STATEMENT HIMSELF ON WHICH BRITISH MINISTERS COULD HANG THEIR STATEMENT.
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14.
MR DELL