མས་མཙས་་་བ -

CONFIDENTIAL ##

4

(c) there would be no flexibility provisions

for the 8 very sensitive items (see

Footnote 2);

(a) these cut-backs would be applied both at

the EEC level and at the Member State

level (i.e. on aggregate limits and sub-

limits for individual Member States).

/2.

Footnote 2: The standard flexibility provisions

set out in the MFA are 7% swing (i.e. transfer of yardage to one

item from unused yardage in a different item), 10% carryover (i.e. yardage unused in one year may be carried over for use in the following year in the same item) and/or carryforward (anticipation of the following year's yardage for use in the current year in the same item) of which carryforward shall not be more than 5%; and the flexibility provisions in the current EEC/HK bilateral agreement largely follow the MFA provisions.

A

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