TNAG-0627-FCO40-775-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 120

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MR. STEWART'S COPY

TO IMMEDIATE FCO TELNO 3059 OF 10 MAY 1977

INFO UKMIS GENEVA,

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MEETING OF WORKING GROUP ON TEXTILES: 10 MAY

SUMMARY

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16 MAY 1977

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1. MOST OF THE DAY WAS SPENT ON THE WORKED EXAMPLES OF THE GLOBAL ASSESSMENT WHICH FORMS PART OF THE COMMISSION'S APPROACH TO CUMULATIVE MARKET DISRUPTION AND IT WAS AGREED TO CALL A MEETING OF AN EXPERT GROUP ON 16 MAY TO TRY TO AGREE ON ESTIMATES FOR THE GROWTH OF CONSUMPTION OF THE SENSITIVE PRODUCTS CONCERNED OVER THE PERIOD 1978 TO 1962.

GLOBAL ASSESSMENT

2. THE GROUP EXAMINED THE COMMISSION'S WORKED EXAMPLES ON COTTON YARM AND MEN'S SHIRTS. THESE WERE EXTENSIVELY CRITICISED.

THE COMMISSION'S ASSUMPTION OF A 4 PER CENT GROWTH IN THE MARKET FOR COTTON YARN WAS CONSIDERED OVER-OPTIMISTIC AND IT WAS AGREED THAT THE ESSENTIAL FIRST STEP TOWARDS ESTABLISHING AGREED INTERNAL GLOBAL IMPORT CEILINGS WAS TO GET AN AGREED VIEW ON THE PROSPECTS OF GROWTH OF CONSUMPTION IN THE COMMUNITY. MEMBER STATES WILL PROVIDE FOR THE MEETING ON 16 MAY ALL THE RELEVANT DATA FOR THEIR REGIONS OF THE COMMUNITY INCLUDING CONSUMPTION FIGURES GOING BACK OVER A PERIOD OF 10 YEARS OR SO.

3. THE PRINCIPLE EMPLOYED BY THE COMMISSION TO DIVIDE UP THE AVAILABLE GROWTH IN THE MARKET BETWEEN IMPORTS AND DOMESTIC PRODUCTION WAS ALSO CRITICISED. THE FRENCH POINTED OUT THAT

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