TNAG-0237-FCO40-273-Trade-relations-between-EEC-and-Hong-Kong-1990 — Page 60

CONFIDENTIAL

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OF IT IN EUROPEAN EYES IS THAT ALL OTHER EXPORTING COUNTRIES

ARE ACTIVELY SEEKING ARTICLE 4 AGREEMENTS WITH THE COMMUNITY.

5. THE GERMANS WILL NOW CAUCUS HERE ON MONDAY TO COORDINATE

THEIR INTENDED POSITION AT NEXT THURSDAY'S 113 COMMITTEE

MEETING IN BRUSSELS. AT THIS LATTER FRIEDRICH HAS PROMISED THAT

HE WILL INSIST THAT ERNST SET OUT HIS PROPOSED PLAN OF ACTION

TOWARDS US, 1.E. THE FORMAL REQUEST ETC., IN SOME DETAIL.

IN THE LIGHT OF ERNST'S RESPONSE TO THIS THE GERMANS MAY THEN AND

THERE PROPOSE THE 3 MONTH EXTENSION, OR ALTERNATIVELY THEY MAY

SIMPLY BOW TO COMMUNITY PRESSURE FOR AN ARTICLE 4 AGREEMENT

WITH EFFECT FROM 1 OCTOBER, AS ERNST IS CONSISTENTLY URGING

THE. THE GERMANS WILL CAUCUS HERE AGAIN AFTER THE 18 JUNE

MEETING AND ADVISE ME OF THE OUTCOME.

6. MATERIALLY SPEAKING THE GERMANS, INCLUDING FRIEDRICH, WELCOME OR ARE AT WORST INDIFFERENT (AS THEY PUT IT) TO A

3- MONTH EXTENSION, BUT ON THE COMMUNITY FRONT THEY ARE NOT

GOING TO RISK ANTAGONISING THE OTHER 5 ON THE ISSUE. DESPITE THIS

I DOUBT IF AN OUTCOME OF UNITED PRESSURE ON US TO NEGOTIATE

IN, SAY, EARLY JULY IS QUITE INEVITABLE, FRIEDRICH HIMSELF

CAM ROUND FINALLY TO A MUCH LESS PRO-CRNST APPROACH THAN AT THE

START OF OUR TALKS.

7. THE LATEST ARTICLE 113 COMMITTEE AGREEMENTSEEMS TO HAVE

SETTLED THE OVERALL LEVELS AND ALL THE FLEXIBILITY : ROVISIONS BUT HOT, FOR EXAMPLE, THE ACTUAL BASIS FOR CATEGORISATION NOR

SPECIFICALLY THE QUESTION OF FABRICS. THE ADMINISTRATIVE

ARRANGEMENTS ARE AT PRESENT TO BE LEFT APPARENTLY TO THE DIS-

CRETION OF MEMBER STATES WITH THE PRINCIPLE OF ''DOUBLE-CHECK-

ING'' DESIRABLE BUT NO MORE THAN THAT. THUS EFFECTIVELY

THE FRENCH MAY BEABLE TO HOLD THEIR PRESENT GROUND PENDING

PRACTICAL DEVELOPMENTS IN THE FIELD OF UNIFORM COMMUNITY IMPORT

ARRANGEMENTS.

3. THE IMPLIED AGREEMENT IS PRETTY WELL A PHOTOGRAPH OF THE

CURRENT RESTRICTIONS, WITH ITALY THROWN IN, ALL WITH SOME UNIFORM

PRESENTATIONAL CHARACTERISTICS, TO BE OFFERED ON VIRTUALLY A

CONFIDENTIAL

/TAKE-IT-

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