TNAG-0149-FCO40-185-Cotton-textiles-to-France-1969 — Page 64

0003230 G.F. 323

+

CONFIDENTIAL

Products other than cotton textiles

8.

In this part of the talks, Jordan began by observing that the continued existence of France's discriminatory restrictions against Hong Long was difficult to reconcile ith the long since implemented 0.9.9.9. code of liberalisation, which had been applicable to dependent territories of member countries; and with France's obligations under the G....T.T., especially Articles I, XI and XIII thereof. He emphasized that we were not negotiating. The French

ere then asked to -

9.

(i)

explain the omission in the French notification to the G..T.2. (L/2981/..dd. 16) of items restricted to ong Kong (includin; the items of non-cotton garments misleadingly included under "Headings and -ub-headings Covered Primarily or in a „ubsidiary

ay by the arrangement of 9 February 1962 on Cotton Textiles';

(ii) explain the omission in the G....T.T. notification

of the discriminatory nature of the restrictions applied unilaterally to Hong Kong in contravention of Article XIII of the ...T.T. ;

(iii)

(iv)

accord full m.f.n. treatment to Hong Kon in accordance with Article I of the G.A.T.T. and to remove the restrictions in accordance with article XI of the G.A.T.T. • ;

give details of the global quotas for items notified to the G.A.T.T. and confirm that Hong Kong imports can share in these global quotas, in accordance with

rticle III of the G.!.T.T.

Collin explained that their notification to the G........T.T. stemmed from their import regime which covered three categories of trading partners

(a) C. .C.D. countries (which he subse uently amplified

as meaning, in fact former 0.9.8.0. countries plus U...... and Janada);

(b)

other 1. .T.T. countries (including some developing countries not formally in the G.....I.T.)

(c)

Communist countries.

He

In their view Hong Kong did not fall within any of these three groups. .s France only notified to the ..7.1. their general import regime, the special rejime applicable to ong Kong was not included. apeared also to be indicating, that Frence did not consider dong Kong to be entitled to "....T.T. rights. However, when challenged with Article IV, paragraph 1, the derritorial Application List of the G. .T.F., and the fact that in 1962 Trance had tabled with the G.A.N.T. a separate list of restrictions against long long, Collin backed down and conceded that the French restrictions were without legal basis. He said they were "practical" or 'factual" (the consultations were conducted in nglish and we were never quite sure which word he was usin), and only existed because the Dritish refused to discuss the matter ith them to come to an agreement. Reference was "lso made to British residual restrictions and to the butter quota. the absence of restrictions on our continually increasing imports from

e emphasised

France, or anywhere else, and also mentioned the advantages France had derived from our public works contracts.

CONFIDENTIAL

/10