GRS 689
IMMEDIATE
CYPHER/CAT A
FROM UKREP BRUSSELS 151146Z
RESTRICTED
FRAME EXTERNAL
RESTRICTED
PET
INC
DESKBY 15133ZZ
TO IMMEDIATE FCO TELNO 6933 OF 15TH NOVEMBER 1977.
MULTIFIBRE ARRANGEMENT: BILATERALS
DRAFT AGREEMENT.
1. THE COMMISSION YESTERDAY CIRCULATED A REVISED DRAFT (COPIES BY BAG) WHICH INCLUDED SOME NEW AMENDMENTS. IN DISCUSSION MEMBER
STATES MAINTAINED BROADLY THE SAME POSITIONS AS THEY ADOPTED LAST
THURSDAY (REPORTED IN TELNO 6762).
ARTICLE 2(2) (PREVIOUSLY ARTICLE 3(2)). FRANCE CONTINUED TO OPPOSE
THE WAIVER OF GATT ARTICLE XIX RIGHTS. WE AND THE NETHERLANDS
EMPHASISED THAT ANY CONCESSIONS ON THIS POINT WERE STRICTLY
CONDITIONAL ON EFFECTIVE TRIGGER MECHANISMS BEING RETAINED IN
ARTICLE 6.
•
ARTICLE 4 (PREVIOUSLY ARTICLE 5) THE DRAFT NOW INCLUDES PROVISION FOR SWING INTO AND BETWEEN PRODUCTS IN GROUP 1. ABBATE (COMMISSION)
ARGUED THAT THIS SHOULD PRESENT NO PROBLEMS BECAUSE ALONG WITH THE
OTHER FLEXIBILITY PROVISIONS GROUP I SWING DEPENDED ON PRIOR AUTHORISATION BY THE EEC. HE ALSO PROMISED THAT THE COMMISSION WOULD
MAKE IT CLEAR TO THE SUPPLIERS THAT THE COMMUNITY WAS UNLIKELY TO
ACCEPT SWING INTO COTTON YARN AND FABRICS. WE, FRANCE AND ITALY
OPPOSED ANY PROVISION FOR SWING INTO OR BETWEEN GROUP I PRODUCTS.
ITALY HOWEVER SUGGESTED THAT THEY MIGHT ACCEPT GROUP I SWING IF THE
OVERALL MAXIMUM INCREASE RESULTING FROM THE CUMULATIVE USE OF
FLEXIBILITY PROVISIONS WERE REDUCED FROM 9 PER CENT TO 7 PER CENT
FOR GROUP 1.
RESTRICTED
/ ARTICLE 6
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