GPS 600
IMMEDIATE
CYPHER CAT A
RESTRICTED
4KK
121
16.6.11.
391
No
FM UKMIS GENEVA 361238Z
[FRAME EXTERNAL]
RESTRICTED
TO IMMEDIATE FCO TELNO 652 OF 06 DECEMBER
INFO UKREP BRUSSELS, CAIRO
TEXTILES: 113 COMMITTEE, 6 DECEMBER EGYPT
SUMMARY
1. THE 113 COMMITTEE MET TO DISCUSS AN EGYPTIAN REQUEST FOR THE
LIFTING OF THE EEC RESTRAINT ON COTTON YARN FOR THE REMAINDER
OF 1977. SOME MEMBER STATES COULD ACCEPT SUCH A QUOTE GESTURE
UNQUOTE BUT WE, THE IRISH AND THE DUTCH SAID WE COULD NOT.
IN THE ABSENCE OF A CONSENSUS, THE COMMISSION WERE LEFT TO TAKE THEIR RESPONSIBILITIES WITH EGYPT, WITH A WARNING TO BE PRUDENT.
DISCUSSION
2. THE COMMISSION (INITIALLY HOFFMANN AND LATER KLARIC) REPORTED
THAT EGYPT HAD COMPLAINED TO THE TS3 ABOUT THE EEC QUOTA ON COTTON YARN (INTRODUCED IN THE SECOND PACKAGE OF EEC MEASURES IN THE SUMMER). THERE HAD BEEN OTHER COMPLAINTS TO THE TSB ABOUT THE
TWO PACKAGES BUT THESE WERE IN ABEYANCE PENDING THE OUTCOME
OF BILATERAL NEGOTIATIONS. ONLY EGYPT WAS INSISTING ON FULL
DISCUSSION BY THE TSB. HAMZA HAD HOWEVER THE RESTRICTION FOR THE
REMAINDER OF 1977. THE COMMISSION WANTED TO MAKE THIS GESTURE
WHICH THEY SAID WAS REALLY SYMBOLIC AND WITHOUT PREJUDICE
TO THE OUTCOME OF BILATERAL NEGOTIATIONS WITH EGYPT.
3. IN DISCUSSION, SOME MEMBER STATES (FRANCE, GERMANY, ITALY)
WERE DISPOSED TO SUPPORT SUCH A GESTURE WHICH THEY THOUGHT
MIGHT HELP THE CONCLUSION OF A BILATERAL AGREEMENT WITH EGYPT.
NEUNDORFER WAS HOWEVER CONCERNED ABOUT THE LEGAL ASPECTS: THE
PRESENT QUOTA WAS THE RESULT OF A COUNCIL REGULATION AND THERE
WAS NOT ENOUGH TIME TO AMEND THIS BEFORE THE END OF THE YEAR.
THE UK SAID THEY COULD NOT AGREE TO THE LIFTING OF THIS RESTRAINT,
RESTRICTED
lESPECIALLY