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(TO 1977 CUOTA LEVELS) AS BASE RATE ONLY IN THE CASE WHERE THERE IS AN EXISTING 1977 QUOTA AND THE PRODUCT CLASSIFICATIONS
PROPOSED FOR 1978 ARE IDENTICAL TO THOSE USED IN DEFINING THE 1977 QUOTA. THE GROWTH RATES TO BE APPLIED TO THE ITEMS UNDER DISCUSSION, AND USED AS THE BASIS FOR THE CALCULATIONS OF FUTURE UK IMPORT PENETRATION REFERRED TO ABOVE, WERE DESCRIBED BY THE COMMISSION AS ''FIRM INDICATIVE MAXIMA WHICH
THE COMMISSION PROPOSES, DESIRES AND INTENDS TO HOLD TO'
REGIONAL RESTRAINTS.
4. THERE WAS CONSIDERABLE DISCUSSION AS TO WHICH PRODUCTS FROM
WHICH COUNTRIES, WHICH ARE NOT ALREADY PROPOSED FOR COMMUNITY
WIDE RESTRAINTS, WILL BE ACCORDED RESTRAINTS FOR THE UK. WE IDENTIFIED THE SIGNIFICANT PRODUCT SOURCES WITHIN THE LIST ON THE BASIS OF OUR IMPORT PENETRATION CALCULATIONS. THE COMMISSION AGREED THAT IT WOULD PUT FORWARD REGIONAL RESTRAINTS ON BEHALF OF THE UK, IN ADDITION TO COMMUNITY RESTRAINTS ALREADY PROPOSED, FOR THE FOLLOWING:
MEN'S COATS
WOMEN'S COATS
MEN'S SUITS •
MEN'S JACKETS
WOMEN'S SUITS
MACAO
MACAO
SPAIN, ISRAEL
SPAIN, ISRAEL
SINGAPORE
THEY PROMISED BEST ENDEAVOURS FOR A NUMBER OF OTHER ITEMS OF
LESSER IMMEDIATE SENSITIVITY FOR THE UK.
5. THERE WAS CONSIDERABLE DISCUSSION OF THE STATUS OF THE FORMULA IN CHAPTER 3(11)(A) FOR APPLYING REGIONAL RESTRAINTS TO GROUP 2 PRODUCTS (PAGE 6 OF DRAFT NEGOTIATING DIRECTIVES S/1509/77) WHICH SAYS ''WITH RESPECT TO ALL SUPPLIER COUNTRIES WITH WHICH AN AGREE-
MENT HAS BEEN CONCLUDED: AT THE REQUEST OF A MEMBER STATE A PRODUCT WILL BE SUBJECT TO QUOTA ARRANGEMENTS OR A CEILING'' SUBJECT TO CERTAIN OBJECTIVE CRITERIA. THE PRODUCTS WHICH WE PROPOSED FOR REGIONAL RESTRAINTS (THOSE AGREED IN PARA 4 ABOVE) ALL MET THESE OBJECTIVE CRITERIA. THE COMMISSION WERE PRESSED TO
ACCEPT THAT A MEMBER STATE HAD AN UNDENIABLE RIGHT TO TRIGGER
REGIONAL QUOTAS UNDER THE OBJECTIVE FORMULA KENTIONED AS SOON AS
2
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THE NEW AGREEMENTS