GRS 690
CYPHER/CAT A
FROM UKREP BRUSSELS 240730Z
RESTRICTED
FRAME EXTERNAL
RESTRICTED
ва 4.KK 121/616/17.
2400
TO ROUTINE FCO TELNO 6306 OF 24TH OCTOBER 1977
INFO BTC HONG KONG, BRASILIA, BOGOTA, MEXICO CITY, COLOMBO, SINGAPORE, KUALA LUMPUR, BANGKOK, MANILA, BUENOS AIRES, BELGRADE, ATHENS, RABAT, NEW DELHI.
OUR TELNO 6225: MULTIFIBRE ARRANGEMENT
PROGRESS REPORT NO 1 (19-22 OCTOBER).
A. SUMMARY.
BILATERAL NEGOTIATIONS:
(263)
262
1. FORMAL NEGOTIATIONS OPENED. DELEGATIONS EXPRESSED VARYING DEGREES
OF DISAPPOINTMENT AT THE COMMUNITY'S OFFER. OUR USE OF 1976 IMPORTS
AS THE BASE FOR GROWTH HAS BEEN FREQUENTLY CRITICIZED, TALKS WITH
HONG KONG REACHED A DELICATE STAGE. MEMBER STATES ARE MEANWHILE
NOT AGPEED ON THE WORDING OF THE DRAFT AGREEMENT OFFERED TO EACH SUPPLIER COUNTRY. THE COMMISSION ARE NEGOTIATING FIRMLY, AND IN
SOME CASES ARE CLOSE TO HAVING EXHAUSTED THE MARGIN FOR MANOEUVRE
IN THEIR DIRECTIVES.
B. BILATERALS.
2. HONG KONG. SEE M IFT (NOT TO ALL).
3. BRAZIL. NEGOTIATIONS HAVE SO FAR CENTRED ON AN EXAMINATION OF
THE PHILOSOPHY UNDERLYING THE COMMUNITY'S APPROACH, THE VARIOUS RESTRAINT MECHANISMS PROPOSED, DIFFICULTIES OF PRODUCT CLASSIFICA- TION, AND THE DROAD FRAMEWORK WITHIN WHICH GROWTH RATES WILL BE
OFFERED. AT THE CLOSE ON FRIDAY EVENING THE BRAZILIANS SAID THEY
WERE NOT HAPPY WITH THE MECHANISMS PROPOSED, AND WERE PROFOUNDLY DISTURBED BY THE COMMUNITY'S APPROACH TO GROWTH RATES, WHICH THEY (PROBABLY CORRECTLY) DEDUCED WOULD GIVE THEM AN OVERALL GROWTH
RATE OF THEIR TEXTILE EXPORTS TO THE EEC OF LESS THAN 6 PER CENT. DISCUSSION OF THE TONNAGES ON OFFER, AND OF THE DRAFT AGREEMENT, WILL NEVERTHELESS CONTINUE ON THURSDAY.
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14.