I DIATE
CONFIDENTIAL
ра
242
CYPHER/CAT A
GRPS 1000
FROM UKREP BRUSSELS 1620022
CONFIDENTIAL
FRAME EXTERNAL
DESKBY 176580Z
HKK 121/616/1
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TO IMMEDIATE FCO TELNO 6119 OF 16TH OCTOBER 1977
INFO PRIORITY LUXEMBOURG, ROUTINE BOWN, PARIS, UKMIŞ GENEVA.
TEXTILES
RF
2+3
1. THE OFFICIAL TEAM HEADED BY GRAY (DOT) AND RIDLEY (DOI) SPENT 43 HOURS OF ALMOST NON-STOP DISCUSSION WITH THE COMMISSION ON THE PREOCCUPATIONS WHICH HAD CAUSED MINISTERS TO DECIDE THAT THE UK RESERVE ON THE OPENING OF BILATERAL TEXTILE NEGOTIATIONS COULD NOT
YET BE LIFTED.
2. THE COMMISSION PROVISED FIGURES FOR BASE LEVELS AND GROWTH RATES FROM ALL COUNTRIES TO BE THE SUBJECT OF BILATERAL COMMUNITY RESTRAINTS FOR THE ITEMS ON THE UK REGIONALLY SENSITIVE LIST ALREADY DESPATCHED BY MR DELL TO COMMISSIONER DAVIGNON (YOUR TELNO 1923). THIS HAS ENABLED US TO ESTIMATE THE LIKELY IMPORT FENETRATION (FROM LOW COST SOURCES) FOR THESE ITEMS IN 1981 AND HAS MADE POSSIBLE COMPARISON WITH THE IMPORT PENETRATION IN 1976.
3. THE COMMISSION GAVE A NUMBER OF INITIAL ASSURANCES WHICH HAVE MADE THE POSITION OF THE UK UNDER THE NEW BILATERAL AGREEMENTS
CONSIDERABLY MORE CLEAR:
(1) THEY HAVE ACCEPTED AS A FIRM PRINCIPLE THAT QUOTAS WILL BE
MAINTAINED FOR THE UK ON ALL ITEMS ON WHICH THERE ARE EXISTING COMMUNITY AND REGIONAL RESTRAINTS OF ALL TYPES.
(11) THE COMMISSION HAVE CONFIRMED THAT, FOR THE REGIONALLY
SENSITIVE ITEMS ON WHICH DISCUSSION WAS CONCENTRATED, BASE RATES WILL BE CALCULATED ON THE BASIS OF 1976 IMPORTS USING A SIMPLE FORMULA FROM WHICH THE COMMISSION DOES NOT INTEND TO DEPART, THE FORMULA INVOLVES DEPARTURE FROM 1976 IMPORTS
CONFIDENTIAL
/ (TO 1977 QUOTA