0003230
G.F. 323
CONFIDENTIAL
Record of Meeting in D. E. C. Headquarters Brussels
on 23rd March 1970 at 10.30 a.m.
F.C.O.
13/2
Present:
E.E.C.
Mr. W. Ernst
Mr. R. Ravenna
Mr. Morosi
Mrs, Bernard
Hong Kong
Mr. W. Dorward
Mr. D.J.C. Jones
Ernst opened the meeting by saying that he was ready to
express commitment on behalf of the E. E. C. in regard to :
2.
(a)
::(b)
a three year extension of the C.T.A., and
discussions on future multilateral textile arrangements to begin immediately after extension.
As regards the form of the consultations with Hong Kong, he said that even if this were not now a formal negotiation, it was in effect at least a conditional negotiation. He would find it difficult to say very much with commitment unless the Hong Kong side could respond in a way which also implied commitment. He suggested that the E.E.C. "Model Agreement" might be taken as a basis for discussion. All that he was able and prepared to offer was an Article 4 Agreement on the basis of the Model Agreement.
3.
Dorward responded that he and Jones were present to talk in terms of the C. T.A., not an Article 4 Agreement. Any E.E.C. offers would be measured in such terms; and Hong Kong's commitment did not extend beyond what was required of it by the C.T.A. Ernst said that the E.E. C. was wholly committed to the Model Agreement and it was merely a matter of whether or not Hong Kong would accept it. Dorward said that for the purpose of these consultations it could be accepted as no more than an agenda for discussions. The Hong Kong representatives had come to hear the E.E.C.'s specific indications of the improvements they could offer Hong Kong within the terms of the C.T.C. conclusions of December 1969. The acceptance or otherwise of any commitments in principle to enter into an Article 4 negotiation thereafter would be entirely dependent on the terms indicated.
4.
Jones asked what was implied by the term "Model Agree- ment" in terms of coverage, categorisation, flexibility, administration, etc. For instance, did it necessarily have to cover all the trade. Ernst said it was absolutely essential that the same coverage should be applied to all countries with whom the E. E. C. was negotiating and to all Member States. This would in effect be total imports of cotton textiles other than yarns as at present provided for in the Agreement with, for example, India and Pakistan. The total would be divided into two broad groups:
Group 1
Group 2
grey and bleached fabrics
other cotton textiles including garments and made ups
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