KORIKIULAD
2
7. India
The Note Verbale requesting consultations on Category 6 to the UK was circulated (attached C).
B Preferential Counties (sent sepustely)
C. Problems Folklore India and Handloom Pakistan
8. In the absence of Mme le Bail-Ellis, Hofmann (Commission) said there were no fresh developments. He asked. Member States for final views. The UK delegation asked for clarification of the logic behind 'folkloric'. They had no objection to genuine 'folkloric' in small quantities but the present situation was open to abuse. The French also wanted a clearer definition of
'folklore' to ensure that they were not flooded with blouses, skirts, etc, under another name. They suggested introducing a buffer for the 4 most sensitive products. The Italians were not in a position to lift their reserve.
9. Hofmann pointed out that to submit quantitive restrictions as a compromise would be in breach of the MFA - such a request would have to come from the Indian side. A possible approach was one suggested by the French delegation the Community would be prepared to accept the introduction of artificial silk so long as it only involved Folklore on which agreement had been reached, and not at all on sensitive products. The Commission will ask for a final decision tomorrow.
10. On Handloom Hofmann said the Commission could ask the Pakistanis if they would agree to avoid excessive imports of the most sensitive products. In answer to a UK point on quotas, he repeated that no restriction could be negociated on either Handloom or Folklore unless it was suggested by the other side. Discussion will continue next week.
D. Basket Exits
11. Hofmann summarised the position.
(a) India (UK)
Category 5
a Note Verbale had been sent to the Indians the level for Basket Exit had not yet been reached.
Category 6 - the Commission had asked for the immediate suspension
of imports to the UK with a request for consultation to agree on a level.
(b) Singapore
Category 28 (UK)
consultations have been held and agreement reached. A regulation will be published in the next few days.
RESTRICTED
/Category 39