RESTRICTED
THERE HAVE BEEN NO FURTHER DISCUSSIONS BETWEEN THE COMMISSION
AND THE PORTUGUESE BECAUSE OF PORTUGAL'S POLITICAL SITUATION.
THE COMMISSION ARE HOWEVER HOPEFUL THAT DISCUSSIONS CAN BE
RESUMED WITHIN THE NEXT FEW WEEKS. A TABLE SHOWING QUOTAS
BROKEN DOWN BY MEMBER STATES WAS DISTRIBUTED AT THE MEETING:
THE COMMISSION ASKED THAT MEMBER STATES SHOULD QUICKLY AGREE
TO THIS SO THAT THESE LEVELS CAN BE COMMUNICATED TO THE PORTUGUESE.
SEVERAL DELEGATIONS RAISED THEIR EYEBROWS AT SOME OF THE FIGURES
BUT THERE WAS NO SUBSTANTIVE DISCUSSION.
7. THE COMMISSION WILL BE ENTERING INTO MORE FORMAL NEGOTIATIONS
WITH SPANISH REPRESENTATIVES IN BRUSSELS ON THURSDAY. COPIES
OF A NEW SPANISH AIDE MEMOIRE DESCRIBING THE POOR STATE OF THE
SPANISH TEXTILE INDUSTRY, AS A BACKGROUND TO THE SPANISH REQUEST
FOR RECIPROCAL RESTRAINT OF COMMUNITY TEXTILE IMPORTS TO SPAIN, WAS DISTRIBUTED AT THE MEETING (COPIES BY BAG).
D. EASTERN EUROPE
8. SUTTON (COMMISSION) REPORTED THAT THERE HAD BEEN LITTLE
MOVEMENT WITH THE OUTSTANDING COUNTRIES, HUNGARY AND POLAND. IN
GENERAL THE POLES WERE THE MORE KEEN TO HAVE AN AGREEMENT AND
THEREFORE MORE WILLING TO ACCOMMODATE THE UNPALATABLE ASPECTS OF
THE COMMUNITY'S OFFER SUCH AS THE PRICE CLAUSE, REQUESTS FOR RECIPROCITY AND THE TERRITORIAL APPLICATION CLAUSE. THE HUNGARIANS
WOULD IN NO CIRCUMSTANCES ACCEPT THE RECIPROCITY CLAUSE OR THE
TERRITORIAL CLAUSE. IT WOULD PRESUMABLY FALL TO THE COUNCIL AT
THE END OF THE DAY TO DECIDE WHETHER AN AGREEMENT WITH HUNGARY
LACKING THESE CLAUSES WAS ACCEPTABLE. IN THE MEANTIME THE COMMISSION
WOULD REFUSE TO MOVE ON THE TEXTS OF THE AGREEMENTS.
E. HONG KONG: SUB-LIMITS ON CLOTH
9. THE BELGIAN REPRESENTATIVE REHEARSED HIS EARLIER REQUEST FOR
ALTERATIONS TO TBE SUB-LIMITS IN CATEGORIES 2 AND 3 (COTTON AND SYNTHETIC CLOTH). THE COMMISSION (BECK) REPORTED THAT THEY
3
RESTRICTED.
/HAD