RESTRICTED
(C) THE BURDEN SHARING FORMULA. THE PRESIDENCY POINTED OUT
THAT THEIR COMPROMISE WOULD SATISFY NO-ONE AND THIS WAS ITS MERIT.
IDEALY THE COMMUNITY SHOULD WORK OUT A NEW FORMULA BUT TIME DID NOT
FERMIT THIS. A GENERAL RESERVE FROM ALL DELEGATIONS PENDING ARITH-
METICAL CALCULATIONS ON THE BASIS OF FIGURES NOW SUPPLIED TO THE-
MEETING BY THE COMMISSION.
(D) GROUP 2 PRODUCTS. THERE IS STILL NO FINAL AGREEMENT ON THE
LIST OF PRODUCTS TO BE INCLUDED IN GROUP 2 NOR ON THE CRITERIA TO BE USED FOR CHOOSING WHICH IMPORT ARRANGEMENT (PAGE 7 OF THE PAPER)
WILL BE APPLIED TO GROUP 11.
(E) BUTOIR-CEILING ARRANGEMENTS. EXTENSIVE DISCUSSION PRODUCED NO
AGREEMENT IN PRINCIPLE ON THIS PROPOSAL. DISCUSSION PETERED OUT LAST
NIGHT ON THE FIRST PARAGRAPH OF PAGE 7.
PROGRESS MADE
3. SOME PROGRESS WAS NEVERTHELESS MADE. FOR EXAMPLE:
(A) THE BASKET SYSTEM (PAGE 5). THE FORMULA HERE WAS SIMPLIFIED, SUB-PARA (A) WAS DELETED AND SUB-PARA (B) NOW READS THESE BASKETS, BY GROUPS OF PRODUCTS, CONSIST OF A SIMPLE LIST OF PRODUCTS IN-
CLUDED.'' THE REFERENCE TO HONG KONG, INDIA AND KOREA WAS DELETED.
(B) ''EXIT THRESHOLDS''. THE COMMISSION (TRAN) AMPLIFIED THE
REFERENCE TO MARKET PENETRATION RATES. THEY SAID THAT THE RATE
OF PENETRATION OF THE MARKET WAS A NECESSARY BUT NOT A SUFFICIENT
CONDITION FOR ACTIVATING THE EXISTING THRESHOLD. A FURTHER
NECESSARY CONDITION WAS THAT THE PRODUCT SHOULD ATTAIN A PERCENTAGE
(E.G. 56) OF NON-EEC IMPORTS.
(C) IN THE SECOND INDENT PARAGRAPH IN PAGE 6 (''AT THE REQUEST
OF THE MEMBER STATE.... **) NOW READ 2% FOR GROUP 2, 4% FOR GROUPS 3 AND 4 AND 7% FOR GROUP 5. THE WORDS IN BOTH PARAGRAPHS 'A PRODUCT
MAY BE SUBJECT'' NOW READ A PRODUCT WILL BE SUBJECT''
(D) TREATMENT OF PREFERENTIAL COUNTRIES. AGREEMENT WAS REACHED ON
A TEXT CONCERNING THE ENFORCEMENT OF THE GLOBAL CEILINGS, INCLUDING
FOR PREFERENTIAL TRADING PARTNERS.
4. SOME POINTS AGREED YESTERDAY, HOWEVER, WERE REOPENED TODAY.
2 RESTRICTED
/COMMENT.