TNAG-0149-FCO40-185-Cotton-textiles-to-France-1969 — Page 65

0003230

G.F. 323

K

CONFIDENTIAL

incl.

36/2/11

2

10.

Sollin claimed, hoever, that although longong was lens favourably tre .ted the il .3... countries, we vere no less favourably treated than other ... .T. countries and that the scope of the neative list was being constantly reluced. The basis of this claim vas that compared to the basic G...T.T." regime, Hong Kong „as discriminted against only in tariff items 85.10 forches and 35.03 -lectric batteries while some twenty items still restricted to other G... T. countries (excluding "0.7.0.9.) have been liberalised to uong, Kong. Jordan challenged this by reiterating that

11.

(a)

(b)

(c)

(a)

(e)

we were entitled to m.f.n. tre tinent;

the provisions of rticle I of the ...... did not allow for more favourable treatment being accorded to "0.1.C.D. countries (or some most favoured nations being more most favoured than others);

thic alleged balance of itens was unilaterally imposed without consultation and certainly without our agreement;

of the twenty items apparently liberalized to long

on and not to other G. ..T. countries, we generally had no production or very little exports and for which France had bilateral arran ements with some of those countries; and

for the two itens liberalised to all G.A.T.2. countries as well as the dastern bloc and China, but not to Hong Kon, we were an important producer and exporter.

1

In the course of our examination of the French List L/2981/hdd. 16 of 8 January 1969, Collin stated that of the 26 ite is liberalised to 10.0.0.0. only 17 were not liberalised to long Kong; that the entire list of 8 January applied to all members of the Q...T.F. (excluding *0.1.0.0.-); and that certain hard-core items (e.g. agricultural products, cool and items like seni-conductors) applied to C.0.0.0.0 members as well. Some items recently liberali ed to all G.....T.T. members (including Hong Kong) had not been deleted from the list. A copy of the summary of the comparative French residual restrictions handed to Jordan at these talks is attached at nclosure 2 for your information.

12.

Collin also claimed that itens not ive specific quota levels in their agreements with Communist countries were not necessarily liberalised to thea. These omissions could be due to those countries being considered to have no interest in such items.

13.

ith regard to the cuestion of global quotas, Collin confirmed that for items restricted to all countries, including . 3.0.9.4. "

lobal quotas were established. For the majority of industrial products restricted to 3. .7.7. countries (excluding "C. 1.C.D."), they had lobal, bilateral and unilateral quotas. Countries like Japan, India and South Africa were on bilateral quotas, Hong Kong was on unilateral, and the rest were on global quotas. hen questioned about their legal position under Article XIII of G..T.T., Collin stated that where Hong Kong did not have a unilateral quota there was no reason why she could not benefit from the global quota. However, he then said that global quotas only meant that imports might be permitted if considered necessary by the French Government and that bilateral or unilateral quotas offered greater advantage to the exporting countries as imports up to a certain level were guaranteed. Collin observed that there were in fact only two major sources of supply for such items: Japan and long Kong, and therefore there was no need for global quotas.

CONFIDENTIAL

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