TNAG-0386-FCO40-432-Exports-of-non-cotton-textiles-from-Hong-Kong-to-the-EEC-1973 — Page 38

PRIORITY

CYPHER CAT A GPS 600A

FM UKREP BRUSSELS Ø32148Z

RESTRICTED

FRAME

RESTRICTED

1973

TO PRIORITY FCO TELNO 2270 OF 3 MAY/INFO PRIORITY TO HONG KONG

ROUTINE TO BRUSSELS, THE HAGUE, LUXEMBOURG.

HONG KONG TELEGRAM NO 428 TO YOU.

HONG KONG TEXTILES.

(64)

1. THE SOLUTION SUGGESTED IN PARA 4 OF HONG KONG TELEGRAM UNDER

REFERENCE - A BENELUX NEGOTIATION WITH HONG KONG - IS UNLIKELY TO BE POSSIBLE. COUNCIL DECISION OF 16 DECEMBER 1969 DOES NOT PERMIT

MEMBER STATES TO NEGOTIATE, WHETHER WITH OR WITHOUT THE, AUTHORISAT-

ION OF THE COUNCIL.

2. WHILE WE CAN AND SHALL CONTINUE TO POINT TO THE WIDER NEGOTIATIONS

IN WHICH THE COMMUNITY WILL BE INVOLVED FOLLOWING A NEW INTERNATIONAL

AGREEMENT ON TEXTILES (AS SET OUT IN PARAS 5 AND 6 OF HONG KONG

TELEGRAM UNDER REFERENCE) THIS DOES NOT ALLEVIATE WHAT BENELUX SEEMS

TO REGARD AS AN IMMEDIATE PROBLEM. WE SHOULD THEREFORE EXPECT

CONTINUING PRESSURE FOR ACTION IN THE WORKING GROUP.

3. THE CLASSIC COMMUNITY SOLUTION WOULD, AS INDICATED IN MY TELEGRAM

NO 1519, COMPRISE NON-RESTRICTIVE CEILINGS FOR REGIONS OF THE

COMMUNITY WHICH DO NOT CURRENTLY HAVE A PROBLEM OVER IMPORTS OF THE

TYPES OF GOODS CONCERNED. BUT THIS IS, OF COURSE, A STEP TOWARDS

COMMUNITY-WIDE RESTRICTIONS AND FACILIS DESCENSUS AVERNO.

4. IN PRINCIPLE, THE COMMISSION COULD NEGOTIATE AN AGRREMENT WITH

HONG KONG ON BEHALF OF BENELUX ALONE. SO FAR AS WE KNOW THERE IS NO

PRECEDENT FOR SUCH A NEGOTIATION AND THE RECENT COMMISSION ACTION

ON BEHALF OF ITALY IN CONNECTION WITH IMPORTS OF TAPE RECORDERS FROM

JAPAN IS NOT A CLEAR ANALOGY.

5. BENELUX COULD TAKE AUTONOMOUS MEASURES TO RESTRICT IMPORTS OF

ANY GOODS WHICH THE COMMUNITY HAS NOT LIBERALISED. IN ACCORDANCE

WITH ARTICLE 5 OF THE COUNCIL DECISION OF 19 DECEMBER 1972, SUCH

EXERCISE OF AUTONOMY IS ONLY POSSIBLE IF THE COUNCIL HAS NOT ISSUED

A MANDATE FOR NEGOTIATIONS - IT CANNOT BE EXERCISED SUBSEQUENTLY.

RESTRICTED

16.