TNAG-0627-FCO40-775-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 22

CODE 18-77

SS 10/76

NOTE FOR THE FILE

HKK 121/363/1

Reference

(66)

FRENCH GATT ARTICLE 19 PROPOSALS

I discussed with Mr Stern of EID his telegram no 1414 (E63). He said that E63 was in response to a telegram from UKRA Brussels (copy now obtained - £64).

1.

2. At a meeting of the Commission on 23 June it was agreed that the Community should take action ts pre-empting the French proposal to take action under GATT.

3. Having seen the French figures, Mr Stern is convinced that the French action was justified but the increase in imports was from Mediterranean countries and not from Hong Kong. The French had issued a notice to importers withdrawing liberalisations on the four items - cotton yarn; knitted shirts; woven shirts; and woven blouses. The Community had invited bids from members of the Community for restrictive action in respect of these four items. The restrictive action was not to be taken against countries with whom textile bilaterals had been reached, eg Hong Kong. The action would therefore be taken against the Mediterranean countries who were associates of the Community and action not on textile bilaterals but on the general bilaterals agreed with these countries. The UK had made its bid (telegram no 1442 of 28 June E65) and Mr Stern expected that Holland, Belgium and Italy would also be putting in bids for restrictive action in respect of the four named items. A meeting of the textiles committee is being held in Brussels today and Mr Stern will let me know the results.

T Duffy

29 June 1977

Hong Kong & General Dept