TNAG-0384-FCO40-430-Trade-relations-between-Hong-Kong-and-the-EEC-1973 — Page 35

airs

PRIORICY

DESKEY 290982Z

CYPHER/CAT A

P4 FCO 2817152

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117

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REF

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DESKBY 2969607

5

TO PRIORITY UKREP BRUSSELS TELNO 1167-08 23 SEPTEMBER, 1973

M 1 P T: EEC TEXTILE POLICY.

EXPOSE DES MOTIFS EXPLANATORY MEMORANDUM

BILATERAL AGREEMENTS,

THE MEMBER STATES HAVE HAD REGARD TO THE FACT THAT THE COMMUNITY'S

-EXISTING RESTRAINT AGREEMENTS ON COTTON TEXTILES UNDER THE GATT LTA,

WHICH LAST TILL DECENDER 31, 1973, ARE BASED ON WIDELY DIFFERING

HISTORICAL PATTERNS OF RESTRAINT AMONG THE MEMBER STATES AGAINST THE

EXPORTS OF THE DEVELOPING COUNTRIES CONCERNED AND THAT THE NEWLY

ACCEDED STATES, NOT PARTIES TO THESE AGREEMENTS, ALSO HAVE DIFFERENT LEVELS AND COVERAGE OF RESTRAINTS ON IMPORTS OF COTTON TEXTILES

AGAINST THESE DEVELOPING COUNTRIES. THEY HAVE FURTHER HAD REGARD

TO THE VARYING REGIMES AMONG MEMBER STATES IN THE APPLICATION OF RESTRAINTS ON IMPORTS OF COTTON TEXTILES FROM THOSE DEVELOPING

COUNTRIES NOT PARTY TO AGREEMENTS WITH THE COMMUNITY AND ON 1MPORTS

OF NON-COTTON TEXTILES FROM DEVELOPING COUNTRIES GENERALLY, MOREOVER

THEY RECOGNISE THAT THE LIMITATIONS PLACED BY INDIVIDUAL HEMBER

STATES ON THE FREE CIRCULATION WITHIN THE COMMUNITY OF IMPORTED TEXTILES WHETHER OR NOT COVERED BY COMMUNITY AGREEMENTS, VARY IN

THEIR APPLICATION AND INTENSITY.

HAVING REGARD TO THE FACT THAT A PERPETUATION OF THESE CONDITIONS PUST PREVENT THE DEVELOPMENT OF A UNIFIED MARKET IN TEXTILES, THE MEMBER STATES INTEND THAT THE COMMUNITY RESTRAINT AGREEMENTS TO REPLACE THOSE EXPIRING ON DECEMBER 31, 1973, AND ANY OTHER RESTRAINT AGREEMENTS WILL BE NEGOTIATED IN ACCORDANCE WITH THE PROVISIONS OF ANY NEW GATT MULTILATERAL TEXTILE ARRANGEMENT AND WILL BE DRAWN UP IN SUCH A WAY AS TO FURTHER THE OBJECTIVE OF A UNIFIED MARKET. TO THB END, THE MEMBER STATED INTEND TO ADOPT BY DECEMBER 31, 1973 A PROGRAMME OF MEASURES AND A TIMETABLE FOR REDUCING, OVER A TRANSIT- IONAL PERIOD, THE DISPARITY IN THE SIZE OF NATIONAL QUOTA SHARES WITHIN COMMUNITY CEILINGS AS A PRELIMINARY TO THE ABOLITION, AFTER A FURTHER TRANSITIONAL PERIOD, OF ALL HATIONAL SUB-DIVISION OF

RESTNOTED

/COMMUNITY