TNAG-0386-FCO40-432-Exports-of-non-cotton-textiles-from-Hong-Kong-to-the-EEC-1973 — Page 92

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of the general principles which the Community should adopt to deal with similar problems which may arise in future. These principles should logically be the same as those which the Community ought

ht to want to see embodied in a successor to the LTA The removal of the immediatel Hong Kong problem should

h enable discussions to proceed in a cooler and clearer

atmosphere.

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Fourth, what happens if Hong Kong's action is too little or too late, and Benelux produces a prima facie case of market disruption? Answer: A solution on a Community basis

It is important that we should not be falsely

But this

Sunce this principle

accepted of C should be found. meathiri Erussels accused of advocating a national solution.)

gal deliminary

solution must pay regard to the fact that the problem is confined to certain regions or sectors of the Community market, and must not repeat 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 now taking place.

Fifth, how can such a Community solution be achieved? Answer: the problem is largely semantic. The prime responsibility for finding a solution lies with the Commission. After all these years they should be quite at finding words which reconcile Community dogmas 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 Nine, but for footnotes to state clearly (a) that the French and Italian shares in the quota (and by extension the total of the Community quota

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itself) are not to be regarded as restraint limits and. (b), t acceding States have existing bilateral! aur alre

arrangements. This might be easier than getting the French and Italians to agree

should to high figures arrived at by some formula, and might also be acceptable to Hong Kong

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Division

22 March 1973