$ 550 PRIORITY
CYPHER CAT A
FM PARIS 12145OZ
CONFIDENTIAL
CONFIDENTIAL
LART
2
RE
13 JUL1/77
82
107
4.KK 121
+
TO PRIORITY FCO TELNO 691 OF 12/7
INFO PRIORITY HONG KONG UKREP BRUSSELS BRUSSELS (FOR BURGESS) UKMIS GENEVA (CC: FOR MILLS)
NONG KONG TELNO 684 TO YOU AND YOUR TELNO 523 TO HONG KONG :
FRENCH TEXTILE RESTRICTIONS
1. WE HAVE DISCUSSED THIS WITH THE FRENCH MINISTRY OF FOREIGN TRADE,
WITH THE FOLLOWING RESULT.
RESPONSE TO COMMISSION PROPOSALS
2. THE FRENCH SUPPORT THE APPROACH UNDERLYING THE COMMISSION'S
SUGGESTIONS FOR COMMUNITY CONTROLS ON TEXTILE IMPORTS, THEY AGREE WITH THE COUNTRIES PICKED OUT BY THE COMMISSION (WHICH DO NOT INCLUDE HONG KONG). THE PROBLEM FOR THEM IS WHETHER THE COMMISSION'S
PROPOSALS WOULD REDUCE THE INFLOW OF TEXTILE IMPORTS TO FRANCE TO
ACCEPTABLE LEVELS.
3. THE COMMISSION'S PROPOSALS ARE INTENDED TO REDUCE THE LEVEL OF TEXTILE IMPORTS INTO THE MEMBER STATES IN THE SECOND HALF OF 1977 TO THE SAME LEVEL AS IN THE SECOND HALF OF 1976. THE FRENCH HAVE MADE THEIR OWN CALCULATIONS AND CONCLUDE THAT, WHILE THE COMM- ISSION'S PROPOSALS WOULD PRODUCE THIS RESULT FOR WOMEN'S BLOUSES AND T-SHIRTS, THEY WOULD STILL LEAVE IMPORTS INTO FRANCE OF MEN'S SHIRTS AND COTTON YARN ( THE TWO MOST DIFFICULT ITEMS) AT 13 TO 14 PER CENT HIGHER THAN LAST YEAR. OFFICIALS HAVE RECOMMENDED AN APPROACH TO THE COMMISSION TO GET THEM TO ADJUST SOME OF THEIR FIGURES: THE FRENCH WILL BE READY TO TAKE MORE BLOUSES AND T-SHIRTS IF THE AMOUNT OF SHIRTS AND YARN COULD BE REDUCED. MINISTERS HAVE YET TO PRONOUNCE ON THESE RECOMMENDATIONS. (THIS INFORMATION SHOULD BE HANDLED WITH GREAT DISCRETION.)
CONFIDENTIAL
/IMPORT.
ab