3
ard processing UK: (Yugoslavia)
In reply to the Chairman's question the UK Delegation said that a meeting was held on 10 July in London but that the problem was not solved yet. There was a discrepancy in UK and Yugoslavian figures and the Uk would see if this was due to a time lag (goods exported in 1976 and imported in the UK in 1977).
Malaysia
France had made a request for exit of the basket for category 11 (gloves). The Malaysian Mission had taken up contact with Kuala Lumpur but not received
a reply yet.
Taiwan
In presenting the revised Annex II, the Commission representative explained that the Council Decision had been only provisional. The purpose was to make a gesture to Taiwan to improve their position overall. The Commission had attempted to reduce the cut-back on Group I from 33% to approx. 27% in the light of the 33% to 11-12% adjustment negotiated with Hong Kong and Korea. But this alone would be insufficient, and adjustments had also been made in Group II - IV (e.g. categories 23 and 37), facilitated by requests from Benelux and the Federal Republic. Improvements had also been made in certain residual categories.
In reply, the UK Delegation was far from satisfied, and with the Italian Delegation, reserved their position: other delegations wished to study the proposals further. The German Delegation, questioned the juridical base for
It was suggested that Article 113 might offer a better foundation than Regulation 1023/70.
the measure.
As to quantities, the Commission representative explained that no genoral criteria had been applied. He outlined the reasoning for the adjustments in Group I, that is, in categories 5, 7 and 8 together with certain optical increases in other Group I categories within the limits of available reserves. Outside Group I, the changes concerned mainly the Federal Republic, following specific requests, but the increase had been sealed down for category 21 and the increases for categories 23 and 27 were to meet certain shortages.
It was agreed to resume discussion the following week with a view, if possible, to finalising the proposals.