GR 1310
་
IMMEDIATE
DESKEY 9628302
HER/CAT A
FM UKREP BRUSSELS £60700Z
RESTRICTED
RESTRICTED
- AKK 121/616/1.
NZ VLO:
13 OCT 1300
217
FRAME EXTERNAL
DESKBY 662838Z
TO IMMEDIATE F C O TELEGRAM NUMBER 5841 OF 6 OCTOBER,
TEXTILES WORKING GROUP, 5 OCTOBER MFA BILATERAL MANDATE
SUMMARY
1. THE CROUP COMPLETED ITS FIRST CONSIDERATION OF THE PRESIDENCY'S COMPROMISE VERSION OF THE OUTLINE NEGOTIATING DIRECTIVES (MY TELNO 5789) ON WEDNESDAY EVENING. IT WILL MEET AGAIN, FOR THURSDAY MORNING ONLY, TO CONCLUDE ITS WORK ON THREE ISSUES WHICH HAVE CAUSED MAJOR PROBLEMS: COTTON YARN, BURDEN SHARING ARRANGEMENTS, AND THE TREATMENT OF PRODUCTS IN GROUPS 3-5. THEREAFTER THE CHAIRMAN AND
THE SECRETARIAT WILL PREPARE THEIR REPORT TO COREPER (SEE PARA 16 BELOW).
2. USEFUL PROGRESS WAS MADE IN THIS MEETING ON SEVERAL POINTS, BUT DELEGATIONS ARE MAINTAINING SOME RESERVES. NO DELEGATION HAS
INDICATED THE POSTURE THAT ITS REPRESENTATIVES ARE LIKELY TO
ADOPT IN COREPER,
DISCUSSION
3. THE FOLLOWING ARE THE MORE SIGNIFICANT PROBLEMS CONSIDERED, AND THE OUTCOME.
!
4. THE 'BASKET SYSTEM. THE 'EXIT THRESHOLD' FORMULA BY WHICH PRODUCTS IN GROUP ?, FROM ALL SOURCES, AND AT BOTH COMMUNITY AND REGIONAL LEVEL, CAN BE TAKEN OUT OF THE BASKET' AND SUBJECTED TO RESTRICTIVE MEASURES, WAS FURTHER MODIFIED AND AGRCED BY ALL
DELEGATIONS. PRODUCTS CAN STAY IN THE BASKET** IF THEY REPRESENT
LESS THAN 1.5 PER CENT OF THIRD-COUNTRY IMPORTS AND IT THEIR
ANNUAL IMPORT GROWTH RATE IN THE COMMUNITY IS LESS THAN 30 PER CENT:
AND A THRESHOLD OF 6.5 PER CENT OF COMMUNITY IMPORTS HAS TO BE REACHED BEFORE THESE CRITERIA ARE TRIGGERED,
RESTRICTED
/5, DISCUSSION