GRS 378
(AMEDIATE
RESTRICTED
CYPHER/CAT A
FROM UKREP BRUSSELS 041530Z
INDEX
RESTRICTED
FRAME EXTERNAL
5 OCT
DESKBY @41626Z
TO IMMEDIATE FCO TELNO 5794 OF 4TH OCTOBER 1977
TEXTILES WORKING GROUP; MULTI FIBRE ARRANGEMENT
MEMORANDUM.
SIPY
tion Tukan
(212)
ра
PRESIDENCY
1. SUMMARY.
THE PROGRESS OF DISCUSSIONS THIS MORNING HAS BEEN SLOW. ONLY THE FIRST TWO PAGES HAVE BEEN COVERED, LEAVING UNRESOLVED POINTS ON COTTON YARN, THE REVIEW CLAUSE AND THE TREATMENT OF THIRD COUNTRIES WITH PREFERENTIAL AGREEMENTS, THE MEETING MAY CONTINUE LATE INTO
THE EVENING.
DISCUSSION.
2. THE UK WELCOMED THE PRESIDENCY COMPROMISE OF ZERO PERCENT GROWTH ON COTTON YARNS. THE COMMISSION, SUPPORTED BY THE GERMANS, ARGUED STRONGLY THAT NEGOTIATIONS ON THIS BASIS WOULD BE IMPOSSIBLE AND SAID THAT THEY WOULD REFUSE SO TO NEGOTIATE, DISCUSSION CONCLUDED WITH A NEW COMPROMISE SUGGESTED FROM THE CHAIR OF A GROWTH RATE OF 0.6 PERCENT. THE COMMISSION SAID THAT THEY COULD LIVE WITH THIS. THE GERMANS RESERVED THEIR POSITION AS DID THE UK AND ITALY,
3. THE REFERENCES TO A REVIEW CLAUSE IN THE AGREEMENTS WERE THOUGHT BY SOME DELEGATIONS AS TO BE IMPRECISE. THE UK SAID THAT IT WAS
OR NOT CLEAR WHETHER A DEGREE OF AUTOMATICITY WAS INVOLVED, WHETHER THE PRESIDENCY ENVISAGED AN AGREEMENT OFFERING CONSULTATIONS. THE FORMER HAD IMPLICATIONS FOR THE SECURITY OF BOTH EXPORTERS AND THE DOMESTIC INDUSTRY. IN.THESE CIRCUMSTANCES THE UK WAS OBLIGED TO PLACE A TEMPORARY RESERVE ON THIS PARAGRAPH, TRAN (COMMISSION) POINTED OUT THAT THE US AGREEMENTS ALL HAD A ? YEAR REVIEW CLAUSE AND SPOKE IN FAVOUR OF AUTOMATIC ADJUSTMENT OF RATES. THE POINT
WAS LEFT OPEN.
RESTRICTED
14. AFTER