- 2.

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raper on wool tops imports from Argentina, Brazil and Uruguay and confirmed that trends were being carefully watched in conjunction with the three suppliers and industry. Action may become necessary at a later date. Delegations' comments on the paper were invited.

India

On the question of the list of Folklore items a compromise draft had

been worked out with Indian representatives and acceptance was awaited from

Delhi.

Trousers from Philippines

The UK Delegation has asked for exit of the basket for category 6 (Philippines). The Philippines had agreed to stop exports to the UK but goods come still to the UK. The delegations were asked if the opportunity of the UK request should be used to adjust the level for the entire Community. For UK quick action was required, regardless at which (UK or Community) level.

A formal request for consultations will be sent to the Philippines Mission.

Exit of the basket

India

The UK had made a request for an exit of the basket; India will provide its export figures.

Follow-up Philippines request concerning adjustments of distribution of quotas

between Hember States.

The German Delegation expressed their willingness to cooperate and were

prepared with some reservations to accept certain requests for increases. The French Delegation expressed their reservation against agreeing to any changes. The UK Delegation could not agree for the time being. They were pessimistic for changes in 1978, but saw possibilities for changes in 1979.

The Chairman said he understands the reservation of some Member States bat

asked them to make a gesture since the requests wore modeat. The problem would be examined again in the following reeting.

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