GR 922
PLASH
CYPHER/CAT A
FM UKREP BRUSSELS 061440Z
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FRAME EXTERNAL
TO FLASH FCO TELEGRAM NUMBER 5856 OF.6 OCTOBER
TEXTILES WORKING GROUP: 6 OCTOBER: COTTON YARN
1. TRAN INSISTED THAT A ZERO PERCENT GROWTH RATE ORIGINALLY APPEARED IN THE PRESIDENCY'S COMPROMISE, WOULD GUARANTEE INSTANT FAILURE OF THE NEGOTIATIONS. HE SAID ONCE MORE AND WITH TOTAL CONVICTION THAT THE COMMISSION WOULD NOT (REPEAT) NOT NEGOTIATE ON THIS BASIS. IF THE MANDATE INCLUDED ZERO GROWTH FOR COTTON YARNS HE WOULD LEAVE COTTON YARNS OUT OF THE NEGOTIATIONS AND THEY WOULD COLLAPSE. HE WOULD THEN BE OBLIGED TO COME BACK TO THE COUNCIL AND HE WAS CONFIDENT THAT THE COUNCIL WOULD GIVE HIM A HIGHER PERCENTAGE GROWTH THAN THAT NOW UNDER DISCUSSION IN THIS GROUP. HE COULD LIVE, WITH EXTREME RELUC- TANCE, WITH THE COMPROMISE TO WHICH THE GROUP COULD (WITH THE EXCEPT- ION OF THE UK AND POSSIBLY ITALY) AGREE, THAT IS A GROWTH RATE OF 0.6 PERCENT. HE NEEDED SOMETHING LIKE 9,500 TONNES TO PLAY WITH. HE REMINDED THE GROUP THAT THE POLITICAL WILL PROBABLY DID NOT EXIST IN THE COMMUNITY TO CUT TURKISH AND GREEK EXPORTS OF COTTON TO THE
COMMUNITY.
2. TRAN'S SUGGESTION, HOWEVER, THAT THE UK WAS IN A PARTICULARLY DIFFICULT POSITION BECUASE OF THE ACTUAL DECLINE IN CONSUMPTION OF COTTON YARN MET WITH ANGRY REACTIONS FROM OTHER DELEGATIONS WHO INSISTED THAT THEY WERE IN SIMILAR POSITIONS. THE BELGIANS IN PART- ICULAR SAID THAT THIS WAS AN ISSUE OF VITAL IMPORTANCE TO THEM. THE CERMAN REPRESENTATION, PURSUING THE HELPFUL LINE IT HAD EARLIER BEEN FOLLOWING IN PRIVATE NEGOTIATIONS WITH FARRY ASKED WHETHER IF THE THE COMMISSION NEEDED 2,500 TONNES, COULD NOT SOME MEANS BE FOUND OF SPREADING THIS SMALL EXTRA BURDER AMONG MEMBER STATES OTHER THAN THE UK (THOUGH HE ADDED THAT THIS WAS ECONOMICALLY A NONSENSE SINCE OTHER MEMBER STATES INCLUDING GERMANY HAD A HIGHER IMPORT PEENETRATION RATE
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