CRPS 420
IMMEDIATE
"CYPHER CAT A
TART
RESTRICTED
**
FIKMIS GENEVA 071855 Z
RESTRICTED
TO IMMEDIATE FCO TELNO 338 OF 7 JULY
INFO UKREP BRUSSELS WASHINGTON
•RECS FE IN
REC!
11 JUL1977
#1
HKK 121/616/1
GATT TEXTILES COMMITTEE: DISCUSSIONS ON 5,6 JULY -RENEWAL OF THE MFA
SUMMARY
1. THE COMMISSION MADE A DECLARATION SETTING OUT THE COMMUNITY'S REQUIREMENTS, WHICH ELICITED CRITICAL REACTIONS FROM THE DEVELOPING COUNTRIES, MANY COUNTRIES INCLUDING THE USA SAID THEY FAVOURED
RENEWAL OF THE PRESENT MFA WITHOUT CHANGE.
REPORT
2. THE GATT TEXTILE COMMITTEE MET ON 5 AND 6 JULY TO DISCUSS THE RENEWAL OF THE MFA. THE COMMISSION (TRAN) MADE, AND CIRCULATED TO DELEGATES, AN OPENING STATEMENT ON THE COMMUNITY'S REQUIREMENTS, WHICH CONTAINED ALL THE POINTS THE MANDATE (DAVIGNON PAPER ANNEX 11) REQUIRES THE COMMISSION TO MAKE. THE STATEMENT DREW A DISTINCTION BETWEEN MAJOR OBJECTIVES STABILISATION OF IMPORT PENETRATION, CUTS IN THE MARKET SHARES OF CERTAIN MAJOR SUPPLIERS TO MAKE ROOM
FOR NEWCOMERS AND OTHER REQUIREMENTS. TRAN INVITED PROPOSALS ON WAYS IN WHICH THE COMMUNITY'S REQUIREMENTS COULD DE MET. THIS DID NOT NECESSARILY MEAN CHANGES IN THE PRESENT MEA, BUT HE HIMSELF HAD NOT PREFERRED SOLUTIONS.
3. REACTIONS BY THE DEVELOPING COUNTRIES WERE UNIFORMLY NEGATIVE. THEY INCLUDED THE POINTS THAT THE COMMUNTY'S REQUIREMENTS WERE INCOMPATIBLE WITH THE OBJECTIVE OF THE MFA: THAT. THE COMMUNITY'S DIFFICULTIES WERE DUE TO THE RECESSION AND TECHNOLOGICAL CHANGES RATHER THAN IMPORTS: THAT IMPORT PENETRATION WAS NOT A TRUE INDI- CATOR OF MARKET DISRUPTION: THAT DEVELOPING COUNTRIES WERE EXPER- TENCING GREATER PROBLEMS THAN THOSE OF THE COMMUNITY: THAT THE COMMUNITY WAS SEEKING A BLANK CHEQUE TO DO WHAT IT WISHED WITHOUT REGARD TO ITS OBLIGATIONS OR THE INTERESTS OF OTHER STATES FRENCH EMERGENCY MEASURES BEING AN EXAMPLE OF THIS.
4. HONG KONG AND KOREA CRITICISED ALMOST EVERY POINT IN THE
COMMUNITY'S DECLARATION.
THE