CONFIDENTIAL
HKK 121/6/6/1.
14 DEC
PA
GR 1200 IMMEDIATE
DESK BY FCO 129900Z
DESKBY UKMIS GENEVA 1208062
CYPHER/CAT A
FM UKREP BRUSSELS 101100Z
CONFIDENTIAL
FRAME EXTERNAL
DESK BY FCO 190908Z: DESKBY UKMIS GENEVA 120800Z
TO IMMEDIATE F C O TELEGRAM NUMBER 7665 OF 10 DECEMBER
INFO IMMEDIATE UKMIS GENEVA.
TEXTILES
MY TELNO 7663:
1. AFTER THE 9 DECEMBER COREPER DISCUSSIONS GRAY (DOT) ACCOMPANIED BY COUNSELLOR (EXTERNAL TRADE) SAW COMMISSIONER DAVIGNON PRIVATELY
AND SECURED IMPORTANT ASSURANCES ON POINTS OF MAJOR CONCERN TO THE
U.K.
(A) INCREASES IN GLOBAL CEILINGS
2. GRAY SAID THAT BEFORE WE COULD CONSIDER THE PROPOSED INCREASES FOR INDIA, EGYPT, PAKISTAN AND BRAZIL, WE NEEDED TO BE CERTAIN
THAT THEY WOULD BE SUFFICIENT TO SECURE THEIR AGREEMENT. MOREOVER
THREE IMPORTANT DIFFICULTIES REMAINED. FIRST THE COMMISSION'S PROPOSAL ON COTTON YARN STILL REPRESENTED A SLIGHT INCREASE ON
1976 IMPORT LEVELS FOR THE U.K. HE REMINDED DAVIGNON OF OUR
EXTREME SENSITIVITY ON THIS POINT. SECONDLY IT WAS ALSO VERY
DIFFICULT TO CONTEMPLATE AN INCREASE IN COTTON CLOTH IMPORTS,
AND THE PROPOSAL TO INCLUDE TEMPORARY IMPORTS IN THE QUOTAS
MIGHT CREATE PROBLEMS FOR THE U.K. PROCESSING INDUSTRY. THE
PROPOSED INCREASES FOR BRAZIL WERE UNACCEPTABLE TO US SINCE
BRAZIL HAD ALREADY BEEN TREATED TOO GENEROUSLY IN COMPARISON WITH
HONG KONG. WE MIGHT, HOWEVER, BE PREPARED TO CONSIDER OFFERING
MORE TO INDIA AND PAKISTAN WHOM WE WISHED TO HELP AS MUCH AS
POSSIBLE CONSISTENT WITH OUR OVERALL OBJECTIVES. THIRDLY HE.
NOTED THE SUBSTANTIAL INCREASES IN OFFERS OF SHIRTS AND BLOUSES TO
INDIA AND ASKED FOR CONFIRMATION THAT THESE DID NOT ENTAIL ANY
CONFIDENTAL
EXCESS