TNAG-0386-FCO40-432-Exports-of-non-cotton-textiles-from-Hong-Kong-to-the-EEC-1973 — Page 125

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TO PRIORITY F C O TELNO. 968 OF 23 FEBRUARY INFO PRIORITY GOV. HONG KONG ROUTINE BONN COPENHAGEN THE HAGUE LUXEMBOURG PARIS ROME INFO SAVING DUBLIN BRUSSELS (COPY FOR DODGE).

MY TELNO. 541:

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RESTRAINTS ON NON-COTTON TEXTILES FROM HONG KONG.

1. THE MEETING OF THE TEXTILES WORKING GROUP ON 22 FEBRUARY DISCUSSED THE COMMISSION'S PROPOSALS FOR NEGOTIATIONS WITH HONG KONG ON RESTRAINTS ON NON-COTTON TEXTILES (DOCUMENT S/27/73), WHILE THE HONG KONG MEASURES TOWARDS GERMANY HAVE SUCCEEDED IN REDUCING THE URGENCY SOMEHWAT, THE PRESSURE IN FAVOUR OF A COMMUNITY SOLUTION (PARTICULARLY FROM DENELUX) WAS IRRESISTIBLE AND OUR ARGUMENT THAT NO CASE HAD BEEN ESTABLISHED FOR COMMUNITY AS OPPOSED TO NATIONAL MEASURES WAS SUPPORTED ONLY BY THE DANES WHILE THE BENELUX PLEA FOR AN EARLY SOLUTION ON A COMMUNITY-VIDE BASIS WAS SUPPORTED BY ALL OTHER MEMBER STATES AND THE COMMISSION, AGREEMENT ON THE PRINCIPLE OF A COMMUNITY SOLUTION WAS REACHED AFTER LENGTHY DISCUSSION AND THE COMMISSION'S PROPOSED DIRECTIVES VERE AGREED SUBJECT TO THE MODIFICATIONS DETAILED BELOW. NO AGREEMENT WAS REACHED ON THE SENSITIVE LIST, ON THE BASE YEARS FOR CALCULATION OF QUOTAS, ON GROWTH CR ON FLEXIBILITY AND CONSIDERABLE NATIONAL DIVERGENCE BECAME APPARENT ON THESE POINTS. THESE OUTSTANDING QUESTIONS WILL BE TAKEN UP AGAIN AT THE NEXT

MEETING OF THE GROUP ON 16 MARCH,

2. THE GERMANS ARGUED FOR A SHORT-TERM SOLUTION AND A SHORT SENSITIVE LIST BASED ON TIGHTLY DEFINED CRITERIA, IT WAS AGREED TO REDUCE THE DURATION OF THE AGREEMENT SO THAT IT WOULD END ON 31 DECEMBER 1974 RATHER THAN AT THE END OF 1976 AS THE COMMISSION

PROPOSED. THE FRENCH STRESSED THAT THE SOLUTION ADOPTED SHOULD

NOT PREJUDICE THE KIND OF ARRANGEMENTS FOR ALL TEXTILES WHICH THE

COMMUNITY WOULD LIKE TO SEE AS A RESULT OF MULTILATERAL

NEGOTIATIONS IN THE GATT. THEY WERE THEREFORE IN FAVOUR EITHER

OF SHORT-TERM UNILATERAL ACTION OR OF AN OVERALL SOLUTION WITH

WIDE COVERAGE BASED ON FOUR FIGURE TARIFF HEADINGS. FOR THE

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/SAME REASON