TNAG-0386-FCO40-432-Exports-of-non-cotton-textiles-from-Hong-Kong-to-the-EEC-1973 — Page 88

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BENELUX WILLINGNESS TO PROVIDE AT LEAST SOME EVIDENCE OF THIS KIND

IS A STEP FORWARD. THE GERMANS ARE SOLIDLY WITH US ON THIS

FUNDAMENTAL POINT,

Q. WHAT HAPPENS IF HONG KONG EXTENDS ITS UNILATERAL RESTRAINT

SUFFICIENTLY TO SATISFY BENELUX?

A.

THE PROBLEM, IF IT EXISTED, EXISTS NO LONGER. THEREFORE THERE IS NO NEED FOR A SOLUTION. BUT IT WOULD STILL BE OPPORTUNE TO

CONTINUE THE DISCUSSION OF THE GENERAL PRINCIPLES WHICH THE

COMMUNITY SHOULD ADOPT TO DEAL WITH SIMILAR PROBLEMS IN FUTURE,

THESE PRINCIPLES SHOULD LOGICALLY BE THE SAME AS THOSE WHICH THE

COMMUNITY OUGHT TO WANT TO SEE EMBODIED IN A SUCCESSOR TO THE

LTA AND IN THE MTN. THE REMOVAL OF THE IMMEDIATE HONG KONG PROBLEM

SHOULD ENABLE DISCUSSIONS TO PROCEED IN A CALMER AND CLEARER

ATMOSPHERE.

5. Q. WHAT IF HONG KONG'S ACTION IS TOO LITTLE OR TOO LATE,

AND BENELUX PRODUCES A PRIMA FACIE CASE OF MARKET DISRUPTION? A. A SOLUTION ON A COMMUNITY BASIS SHOULD BE FOUND. (SINCE THIS PRINCIPLE WAS ACCEPTED AT THE MEETING IN BRUSSELS ON 22 FEBRUARY, IT IS IMPORTANT THAT WE SHOULD NOT NOW ADVOCATE A NATIONAL SOLUTION),

BUT IT MUST PAY REGARD TO THE FACT THAT THE PROBLEM IS CONFINED

TO CERTAIN REGIONS OR SECTORS OF THE COMMUNITY MARKET, AND MUST NOT

IMPOSE COMMUNITY-ENDORSED RESTRICTIONS IN REGIONS WHERE THERE IS

NO PROBLEM: THIS WOULD BE THE EFFECT, QUITE UNACCEPTABLE TO US, OF FIXING CERTAIN MEMBER STATES' SHARES OF A COMMUNITY QUOTA AT

THE LOW LEVELS OF TRADE HOW TAKING PLACE,

6.

Q. HOW CAN SUCH A COMMUNITY SOLUTION BE ACHIEVED?

A. THE PROBLEM IS LARGELY SEMANTIC. RESPONSIBILITY FOR FINDING A

OLUTION LIES WITH THE COMMISSION. AFTER ALL THESE YEARS THEY

SHOULD BE ABLE TO FIND WORDS WHICH RECONCILE COMMUNITY DOCTRINE

ON COMMON COMMERCIAL POLICY WITH THE REALITIES OF MEMBER STATES DOING THEIR OWN SEVERAL THINGS. ONE POSSIBILITY WOULD BE FOR A

NEGOTIATING MANDATE TO INCLUDE A TABLE SHOWING 1972 LEVELS OF TRADE

IN A SHORT LIST OF PRODUCTS FOR ALL THE WINE, BUT FOR FOOTNOTES TO STATE CLEARLY (A) THAT THE FRENCH AND ITALIAM SHARES IN THE

QUOTA (AND BY EXTENSION THE TOTAL OF THE COMMUNITY QUOTA ITSELF)

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