RESTRICTED
4. THE GERMANS AND DANES CONTINUED TO SUPPORT THE TEXT AND SUGGESTED THAT A UNILATERAL DECLARATION CY THE COMMUNITY IN THE TEXTILES COMMITTEE COULD MAKE IT CLEAR THAT AGREEMENT TO RENEW THE MFA WAS
CONDITIONAL. THEY SAW NO NEED TO AMEND THE TEXT.
5. BELGIUM AND LUXEMBOURG SAID THEY COULD JUST ACCEPT THE PRESENT TEXT, BUT IT WAS THE ABSOLUTE MINIMUM AND THEY COULD NOT ACCEPT ANY FURTHER AMENDMENTS TO HELP THE EXPORTING COUNTRIES.
C. IN ANSWER TO QUESTIONS KLARIC SAID THAT AS FAR AS THE COMMISSION WERE CONCERNED NOTHING HAD CHANGED SINCE FRIDAY. TRAN'S ACCEPTANCE OF THE TEXT HAD THE FULL BACKING OF THE COMMISSIONERS. HOWEVER THE COMMISSION HAD LEARNED THAT, IN DISCUSSIONS OVER THE WEEKEND BETWEEN THE EXPORTING COUNTRIES AND THE US AND JAPAN, TWO BROAD THEMES HAD
EMERGED.
(1) ONLY THE COMMUNITY AND NOT THE OTHER IMPORTING COUNTRIES SHOULD ENJOY THE QUOTE FLEXIBILITY UNQUOTE IN PARAGRAPH 5 AND (11) ONLY HONG KONG AND SOUTH KOREA AND NOT THE OTHER EXPORTING COUNTRIES SHOULD PROVIDE THAT FLEXIBILITY. THE AMERICANS COULD JUST ACCEPT (1) BUT OTHER IMPORTERS COULD NOT. HONG KONG, SOUTH KOREA AND THE US WERE OPPOSED TO (11).
7. LONG WILL BE HOLDING A MEETING OF THE COUNTRIES MAINLY CONCERNED ON 19 JULY IN A RENEWED ATTEMPT TO BRING POSITIONS CLOSER TOGETHER. THE COMISSION MADE IT CLEAR THAT THERE WAS NO QUESTION OF MODIFYING THEIR PRESENT APPROACH OR TEXT NOTWITHSTANDING THE STRONG OBJECTIONS
FROM A MAJORITY OF MEMBER STATES.
FCO PASS ADVANCE COPIES TO:
ARBUTENOTT, STERN (EID(E))
CAB HARRIS
DOI - RIDLEY, LOWNE, FARRY
DOT
**
GRAY, WRIGHT, MACFARLANE
BOTTOMLEY
FILES
EID (2)
[ADVANCED AS REQUESTED]
UND
TRE D
HKNGD
NAM O
MR 116BERT MR FRETWELL MR BUTLER MB THOMAS
2.
RESTRICTED