RESTRICTED
6. MALAYSIA. THE COMMISSION REPORT THAT THEY ARE NEAR AGREEMENT
WITH MALAYSIA ON ALL PRODUCTS EXCEPT T-SHIRTS.
7. ROMANIA. ACCORDING TO THE COMMISSION, PROGRESS IS BEING MADE IN THE NEGOTIATIONS WITH ROMANIA BUT THERE STILL REMAINS A LOT OF WORK
TO DO PARTICULARLY ON THE DRAFT TEXT OF THE AGREEMENT.
8. HUNGARY. THE COMMISSION HAVE NOW MADE A FINAL OFFER TO HUNGARY ON - THE FIGURES. HOWEVER THE PROBLEM OF THE PRICE CLAUSE REMAINS A MAJOR STICKING POINT. THE HUNGARIANS ARE FIRMLY OPPOSED TO A FORMAL PRICE CLAUSE FOR PRODUCTS SUBJECT TO QUANTITATIVE RESTRICTIONS. IN THE ARTICLE 113 COMMITTEE, MEMBER STATES MADE IT CLEAR THAT SUCH A CLAUSE WAS ABSOLUTELY NECESSARY. THE HUNGARIANS ARE ALSO REQUESTING THE DELETION OF THE TERRITORIAL APPLICABILITY CLAUSE: THIS IS OPPOSED BY
THE GERMANS.
9. KOREA. THE COMMISSION REPORTED TO THE ARTICLE 113 COMMITTEE THAT THEY WERE CLOSE TO AGREEMENT WITH KOREA AND GAVE DETAILS OF THE FINAL OFFER THE COMMUNITY PROPOSE TO MAKE. WE NOTED THAT IN A LARGE NUMBER OF CASES, THE COMMISSION WERE PROPOSING FURTHER INCREASES ON ALREADY HIGH GROWTH RATES. WE THOUGHT THAT THESE INCREASES REPRESENTED TOO HIGH A PRICE FOR THE CONCESSIONS OBTAINED FROM THE KOREANS AND AMOUNTED TO CLEAR DISCRIMINATION AGAINST HONG KONG. WE STRESSED THAT MEMBER STATES SHOULD SEE FOR THEMSELVES THE CONSEQUENCES OF THE OFFER PROPOSED BEFORE AGREEMENT WAS INITIALLED. THIS WAS PARTICULARLY
NECESSARY SINCE IN SEVERAL CASES THE COMMUNITY'S OFFERS HAD BEEN INCREASED ON THE STRENGTH OF CONCESSIONS AGREED BY SOME MEMBER STATES IN INFORMAL DISCUSSIONS (WITH UNKNOWN CONSEQUENCES FOR THE BURDEN-SHARING FORMULA). MOST OTHER DELEGATIONS APPROVED THE COMMUNITY'S OFFER AND CONGRATULATED THE COMMISSION.
10. PERU. PERU HAVE REJECTED THE COMMUNITY'S OFFER OF 2000 TONS OF COTTON YARN AND 1000 TONS OF COTTON CLOTH FOR 1978 ON THE GROUNDS' THAT IT DOES NOT REFLECT THEIR 1977 PERFORMANCE. TRAN (COMMISS- ION) SAID THAT THE ONLY WAY NOW TO REACH AN AGREEMENT WITH PERU WOULD BE TO EXCEED THE COMMUNITY'S AGREED GLOBAL CEILINGS.
3
RESTRICTED ·
/C. ARTICLE 113