TNAG-0627-FCO40-775-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 121

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N THE CASE OF LOVER IMPORT PENETRATION PRODUCTS IT DID

NOT RESULT IN A STADILISATION OF IMPORT PENETRATION BUT RATHER

IN SUBSTANTIAL LICREASEC, THE GERMANS SUGGESTED THAT A PRODUCT-

BY-PRODUCT APPROACH TO THIS SHAKE-OUT WOULD BE MORE APPROPRIATE

THAN ANY HARD AND FAST RULES. THE COMMISSION WILL REFLECT ON THE

PROBLEM WITH A VIEW TO FINDING A FORMULA WHICH WILL PERMIT

INTERNAL GLOBAL IMPORT CEILINGS TO BE ESTABLISHED FOR ALL THE

PRODUCTS CONCERNED FOR THE YEARS UP TO 1982.

4. THE FRENCH ARGUED THAT THE COMMISSION'S CALCULATIONS PROVED

THAT, AS THEY HAD ALWAYS SAID, THE COMMISSION'S APPROACH DID NOT PROVIDE SUFFICIENT ROOM IN THE MARKET FOR NEWCOMERS, PARTICULARLY SINCE IT WAS UNLIKELY TO BE POSSIBLE TO HOLD DOWN THE MEDITERRANEAN AND LOME SUPPLIERS TO PRESENT LEVELS. SEVERAL

DELEGATIONS ARGUED THAT IF THE COMMUNITY WAS TO OPERATE A

.GENUINE OVERALL IMPORT POLICY AS WAS NOW PROPOSED IT WAS

ESSENTIAL. THAT THE TEXTILES GROUP SHOULD BE MANDATED TO DEAL

WITH TEXTILE IMPORTS FROM ALL SOURCES AND THAT PROBLEMS OF

TEXTILE IMPORTS FROM PREFERENTIAL COUNTRIES SHOULD NOT BE LEFT

TO THE GROUPS DEALING WITH THESE COUNTRIES,

CONSULTATIONS WITH INDIA

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5. THE COMMISSION SOUGHT THE VIEWS OF MEMBER STATES ON THE POSSIBILITY OF MODEST INCREASES IN THE PRESENT LEVELS FOR SHIRTS AND BLOUSES IN THE INTERESTS OF GETTING AGREEMENT WITH THE INDIANS AND AVOIDING A REFERENFCE TO THE TSB. THEY THOUGHT THAT THE INDIANS WOULD AGREE TO 1973 IMPORT LEVELS FOR THE COMMUNITY AS A WHOLE, THE SHARE-CUT OF THESE LEVELS BETWEEN MEMBER STATES WOULD HAVE TO BE DISCUSSED. THE INDIANS HAD SAID THAT THEY WOULD NOT RESUME CONSULTATIONS UNLESS THE RECULATION ON COTTON YARN FOR THE UK WHICH THEY REGARDED AS ILLEGAL) WAS DROPPED. THE GERMANS, FRENCH AND ITALIANS SAID THEY COULD AGREE TO MODEST INCREASES IN THE INTERESTS OF AVOIDING REFERENCE TO THE TSB. HOWEVER, THEY THOUGHT WE HAD A NUMBER OF USEFUL POINTS TO MAKE TO THE TSB, IN PARTICULAR THE COMPARISON WITH INDIAN ACCEPTANCE OF AUTO-LIMITATION FOR THE US. ON YARN WE SAID WE WERE REVIEWING THE FIGURE BUT COULD NOT AGREE TO DROP THE RESTRAINT.

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/POLAND