MEETING NOTE: 11 JULY 1973
HIST. PA 8 Man Hall, EID. FICA 16/
EEC COMMISSION MEETING ON (TEXTILE) IMPORTS FROM THE EASTERN AREA & FAR EAST
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A somewhat ragbag meeting was held under Commission chairmanship in Brussels on 11 July to discuss general aspects of future trade negotiations with Eastern Area countries, the Federal German Republic's proposals to increase quotas on imports from the Far East and the Eastern Area as an anti-inflationary measure, and the UK request for consultations
on France's proposal to restrict certain textile imports from Singapore. For much of the time the meeting was conducted as a restricted consultative committee under the Council Decision of 19 December 1972, but those present had to change their hats from time to time (i e to a committee under Regulation 1023/1966) as matters came under discussion which were based on other items of Community legislation. This note is primarily concerned with textile matters which were discussed under the chairmanship of Mr B W Meynell (Director, DG 11) of the Commission.
The meeting followed on from earlier discussions of the proposed German measures which took place under Commission chairmanship on 4 (UKREP Brussels telegram no 3573 of 6 July 1973 refers).
GERMAN LIBERALISATION PROPOSALS
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5 July
Outward processing traffic with Jugoslavia A Benelux reserve imposed on 5 July was lifted and agreement was given to the German proposal to increase this trade from DM44m to DM 55m.
Imports from Asian Countries (Annex 4 to German letter to the Commission of 22 June The Chairman recalled the Commission's proposal at the previous meeting that Germany should increase quotas by half their proposed amount and reserve the other half against the time when the Commission came to negotiate with Far Eastern textile suppliers on behalf of the Community as a whole. Freydrich (Germany) continued to reject this idea. Since the previous meeting other Community Governments (eg France) had announced anti-inflation quota increases; the German proposals although large in percentage increase terms were minimal in absolute size; and there was doubt about whether the Commission would get a mandate to negotiate with Far Eastersuppliers in the near future. Germany for one would oppose this, she did not want the Commission to negotiate ahead of progress in the GATT textiles discussions in Geneva. The textile trade situation was currently very different from that obtaining 6 months ago when Germany had been concerned at increasing imports from Hong Kong. It was recognised that the present boom could slacken and for this reason Germany regarded her present proposals as once-off short term measures which would not necessarily be repeated next year.
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Kevers (France) was worried by the size of the proposed German quota increases and was willing to give agreement provided that they were cut back significantly. Freydrich was willing to accept 75 per cent of the proposed new levels for quick agreement but this did not satisfy Mme Leclero (Belgium) who thought that increases should be related to present quota levels and not to the German proposals. There was spare capacity in the Belgian industry (particularly for knitted goods) which was anxious to supply Germany but was being cut out by Far Eastern competition on price grounds. Belgium proposed at 20 per cent increase in existing quota levels. The UK (Pownall) did not wish to raise any essential objection to the German proposals but queried whether, given the present trade situation, Germany could actually find the increased imports she was seeking. It would be attractive if the UK could arrange to circulate low-cost textiles to Germany to help with the problem but many classes of goods were currently in short supply on the British market. Denmark also thought there would be supply difficulties and commented that Japan was currently buying heavily from other Far Eastern sources Ireland was also content for the German proposals to go forward but expressed fears about Die
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