TNAG-0384-FCO40-430-Trade-relations-between-Hong-Kong-and-the-EEC-1973 — Page 49

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FM FOREIGN AND COMMONWEALTH OFFICE 2715257

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TO IMMEDIATE UKREP BRUSSELS TELEGRAM NO 1161 of 27 SEPTEMBER, 1973

EEC TEXTILE POLICY,

1.. RIDLEY (DTI) DISCUSSED IN BRUSSELS YESTERDAY WITH ERNST, MEYNELL AND TRAN (DG 1) AND SEPARATELY WITH FRIZ (DG 111) THE POSSIBILITY OF GETTING AN EARLY COMMITMENT BY THE COMMUNITY TO A . PROGRAMIHIE FOR MOVING TOWARDS A COMMON MARKET FOR IMPORTED

TEXTILES ON THE LINES OF THE UK STATEMENT ON 17 SEPTEMBER (YOUR TELEGRAM NO 4324) WITH SUCH A COMMITMENT IN SUFFICIENTLY CONCRETE TERMS THE UK SHOULD BE ABLE TO ACCEPT, SUBJECT TO AGREEMENT

IN DETAIL ON THE FIGURES, THE MODALITIES PUT FORWARD BY THE COMMISS--

ION FOR IMPLEMENTING THE UK OBLIGATION TO APPLY GENERALISED

PREFERENCES TO TEXTILES FROM 1 JANUARY 1974.

2. ERNST DID NOT SERIOUSLY QUESTION THE UK INSISTENCE ON THIS LINK. VARIOUS MEANS WERE SUGGESTED OF EXPRESSING A COMMUNITY COMMITMENT IN THE FEW WEEKS NOW REMAINING BEFORE THE FINAL DECISIONS ON GSP HAVE TO BE TAKEN (COMMISSION ON 24 OCTOBER AND COUNCIL ON 5 ROVERBER). THEY INCLUDED SUITABLE FORMULAE IN THE PREAMBLE, (NEXT THREE WORDS UNDERLINED) EXPOSE DES MOTIFS ON COUNCIL RECORD OF THE DECISION ON GSP AS WELL AS SOME SEPARATE

BUT CONCURRENT EXPRESSION OF INTENT. AS TO THE POSSIBLE MEANS

OF MOVING TOWARDS A COMMON MARKET, BESIDES THE ADJUSTMENT OF NATIONAL QUOTA-SHARES AS PROPOSED IN THE UK STATEMENT, ERNST AND HIS COLLEAGUES THREW OUT SEVERAL IDEAS (NONE NEW) SUCH AS STRICTER USE OF ARTICLE 115 WAIVERS, AND A PROGRESSIVELY LARGER PROPORTION OF COMMUNITY QUOTAS ALLOCATED TO A FREE-CIRCULATION RESERVE.

3.

RIDLEY SAID THAT, WHATEVER THE FORMULA, IT MUST ENGAGE THE

COMMUNITY TO ESTABLISHING BY A SPECIFIED EARLY DATE A PROGRAMME FOR

REDUCING THE DISPARITY IN THE SIZE OF NAŢIONAL QUOTA SHARES AS A

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