TNAG-0464-FCO40-529-Entitlement-of-Hong-Kong-to-EEC-Generalised-Scheme-of-Prefer-1974 — Page 76

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6.

SOUCTS

BEGAN BY GOING THROUGH THE LIST OF RECERVES ON THE

CODISSTON'S ORIGINAL PROPOSALS. THIS PRODUCED LITTLE CHANGE IN

ELEGATION'S POSITIONS. THE FRENCH AND BELGIANS OPPOSED THE DANISH

SUGGESTION FOR THE INCLUSION IN THE SCHEME OF ''SIMPLY TANNED HIDES

AND SKINS'', ON THE GROUNDS THAT THESE WERE BASIC PRODUCTS. IT WAS

AGREED TO TAKE THIS UP AGAIN AFTER THE FORTHCOMING DISCUSSION ABOUT

POSSIBLE TARIFF SUSPENSIONS FOR THESE PRODUCTS IN THE ECONOMIC

QUESTIONS GROUP, TO UNBLOCK THE DISCUSSION THE COMMISSION PUT

FORWARD A NEW COMPROMISE SOLUTION. THE MAIN INNOVATION IS A

PROVISION THAT FOR SOME OF THE PRODUCTS SUBJECT TO SPECIAL BUTOIRS

(PRINCIPALLY THOSE EXPORTED BY YUGOSLAVIA) MEMBER STATES SHOULD REIMPOSE DUTIES WHEN THEY HAVE IMPORTED 50% OF THE SPECIAL BUTOIRS.

A MEMBER OF THE COMMISSION LEGAL SERVICES SAID THAT UNDER THIS

PROPOSAL RESPONSIBILITY FOR THE REIMPOSITION OF DUTIES COULD NOT

BE LEFT IN THE HANDS OF MEMBER STATES. FOR LEGAL REASONS THE

REGULATION WOULD HAVE TO IMPOSE AN OBLIGATION ON MEMBER STATES TO

REIMPOSE. DUTIES AND NOT MERELY AUTHORISE THEM TO DO SO. THE GERMANS,

DANES AND WE ALL SAID THAT THIS WOULD MAKE IT VERY MUCH MORE

DIFFICULT FOR US TO ACCEPT AND THE COMMISSION AGREED TO THINK

AGAIN. NO FINAL POSITIONS WERE TAKEN ON THE DETAILS OF THE PROPOSALS

BUT THE ITALIANS SAID THEY THOUGHT IT WAS HELPFUL AND COMMENTS BY

THE FRENCH SUGGESTED THAT IT WOULD ENABLE THEM TO DROP A NUMBER OF

THEIR RESERVES. THERE WERE SIGNS OF PRESSURE TO EXTEND THIS SOLUTION

TO THE HONG KONG PRODUCTS AS WELL, AS AN ALTERNATIVE TO KEEPING

THEM ON THE SENSITIVE LIST. WE EMPHASISED THE NEED FOR GREATER

PROGRESS IN REDUCING THE SENSITIVE LIST AND FOR PRESERVING THE

LIBERAL ELEMENTS OF THE COMMISSION'S PROPOSALS.

7. THE PROPOSALS OF THE ECSC GROUP ON STEEL PRODUCTS WERE DISCUSSED

AND AGREED BUT 73.08 WILL BE SUBJECT TO THE NEW SYSTEM (SPECIAL

BUTOIR AT 15% FOR YUGOSLAVIA WITH A MAXIMUM OF 50% PER MEMBER STATE) INSTEAD OF THE GROUPS PROPOSAL FOR A 7 AND HALF PERCENT BUTOIR.

6. IN A BRIEF DISCUSSION ON PLYWOOD WE DREW ATTENTION TO THE

RECENT DEMARCHES BY MALAYSIA AND SINGAPORE AND TO THE DIFFICULTIES

FACED BY EXPORTERS IN MALAYSIA (CREDA 26 FROM KUALA LUMPUR REFERS). THE GERAMSN SAID THEY WANTED A QUOTA OF 15,700 CU M: THER DUTCH

WANTED 6,000 CU M.

19. ON

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