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BE VERY HELPFUL. THE COMMISSION SHOULD NOT UNDERESTIMATE THE
POLITICAL DIFFICULTIES OF THESE PRODUCTS WHICH HMG WERE IN A BETTER
POSITION TO JUDGE THAN MR DAVIGNON. IT WAS NOT ENOUGH TO SAY THAT
WE COULD MAKE OUR OWN CALUCLATIONS: WE HAD DONE SO BUT IN MANY CASES
IT WAS IMPOSSIBLE TO RECONCILE THEM WITH THE INFORMATION WE
WERE GETTING FROM THE COMMISSION.
16. CONCLUDING, DAVIGNON SAID THAT THE TECHNICAL SITUATION WOULD BE
ONE OF TOTAL UNCERTAINTY IF THE COUNCIL FAILED TO ACCEPT THE COMMISS-
ION'S PROPOSAL TOMORROW. THE PACKAGE AS NEGOTIATED MADE THE TEXTILE
INDUSTRY AND MEMBER STATES INVULNERABLE TO LEGAL ACTION BY IMPORT-
ERS WHO COULD OTHERWISE HAVE PROVED THAT THE COMMUNITY WAS IN FACT
RESTRICTING IMPORTS WITHOUT PROVING MARKET DISRUPTION. A FAILURE BY
THE COUNCIL TO APPROVE THE PACKAGE COULD NEVERTHELESS NOT BE PROOF
THAT THE NEGTOATIONS HAD FAILED AND IN THE CIRCUMSTANCES THE COM-
MISSION SAW NO WAY OF APPLYING GATT ARTICLE XIX. FAILURE TO APPROVE
WOULD CALL INTO QUESTION EVERYTHING THAT HAD BEEN ACHIEVED, MR JENK- INS (PRESIDENT OF THE COMMISSION) EMPHASISED THE CRUCIAL IMPORTANCE
OF REACHING A DECISION TOMORROW. FAILURE TO AGREE WOULD PUT AT RISK ALL THAT THE COMMISSION HAD ACHIEVED. IT WOULD BE EXTREMELY DAMAGING
FOR THE COMMUNITY'S RELATIONS WITH THE TEXTILE EXPORTING COUNTRIES
AND IN THE MTN NEGOTIATIONS. THE CREDIBILITY OF THE COMMUNITY AS A NEGOTIATOR WOULD BE UNDERMINED AND HE COULD NOT SEE HOW THE INTERESTS CF ANY MEMBER STATE COULD BE FORWARDED, SIMONNET (BELGIAN PRESIDENCY)
ADDED THAT IT WAS POINTLESS TO CONTEMPLATE ANY POSSIBILITY OF DEF- ERRING A DECISION AFTER TOMORROW. THE PRESIDENCY WOULD IF NECESS-
ARY BRING MATTERS TO A CONCLUSION USING THE RULES OF PROCEDURE. HE HOPED THAT TOMMORROW THERE WOULD NOT BE A REPEAT OF THIS AFTERNOON'S
DEBATE: HE EXPECTED THAT DAVIGNON WOULD GIVE A BRIEF REPORT TO THE
COUNCIL AND THAT THEN MINISTERS WOULD TAKE THE NECESSARY DECISION. FCO PLEASE ADVANCE TO ALL ADVANCE COPY ADDRESSEES (DESK BY 2009307) FCO PS/DR OWEN, STERN EID(E)
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SIR J HUNT, FRANKLIN, RENWICK
PS/MR WILLIAMS: MISS LOWNE (CT)
SIR L PLIATZKY, ABRAMSON, HELLINGS CRE1
10 DOWNING STREET, PRIVATE SECRETARY
MAITLAND
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