CONFIDENTTA-L
THE UK WAS PREPARED TO ACCEPT THE COMMISSION'S APPROACH IN GENEVA
PROVIDED ANY COMMITMENT TO SIGN A RENEWED MFA WAS FIRMLY CONDITIONA.
ON FULL SATISFACTION IN THE BILATERALS.
9. THROUGHOUT THE BILATERAL NEGOTIATIONS THE COMMISSION MUST KEEP
IN THE CLOSEST CONTACT WITH MEMBER STATES. WE SHALL NEED AN EARLY
REVIEW IN THE COUNCIL OF PROGRESS IN THE BILATERALS,
BACKGROUND.
A. QUOTE FRENCII 'MEASURES UNQUOTE.
10. THE FRENCH MINISTER OF EXTERNAL TRADE, M ROSSI, ANNOUNCED A
PACKAGE OF UNILATERAL TEXTILE MEASURES ON 18 JUNE DESIGNED TO CUT
FRENCH IMPORTS OF CERTAIN PRODUCTS BACK TO 1976 LEVELS. THE LEGALITY
OF FRANCE'S ACTION WAS IMMEDIATELY QUESTIONED BY THE COMMISSION
AND BY OTHER MEMBER STATES, THE RESULT WAS A COMMI 30ION PACKAGE
WHICH INCLUDED RESTRAINTS ON THE 4 PRODUCTS IN QUESTION ( COTTON YARN, T-SHIRTS, LADIES' ELOUSES AND MEN'S WOVEN SHIRTS) ON A LIST OF SUPPLYING COUNTRIES FOR A DIFFERENT NUMBER OF MEMBER STATES IN
EACH CASE.
11. ALL MEMBER STATES WERE INVITED TO PUT IN THEIR BIDS FOR
RESTRAINTS. THE UK'S LIST WAS ACCEPTED EXCEPT FOR RESTRAINTS ON PAKISTAN AND UGANDAN COTTON YARN, WHERE WE HAVE SINCES STRESSED THE
COMMISSION SHOULD KEEP IMPORTS OF THE PRODUCTS CONCERNED UNDER CLOSE OBSERVATION. OTHER MEMBER STATES HAVE SINCE COME FORWARD WITH
ADDITIONAL DEMANDS, INCLUDING A UK REQUEST TO JOIN IN THE FRENCH
REQUEST FOR CONSULTATIONS ON LIMITING MEN'S WOVEN SHIRTS FROM
SINGAPORE. MANY OF THE EXPORTING COUNTRIES NOW BEING PUT UNDER
RESTRAINT FOR OTHER COMMUNITY MEMBER STATES EITHER ALREADY HAVE
THEIR EXPORTS OF THE PRODUCTS IN QUESTION RESTRAINED FOR THE UK OR CONSTITUTE NO SIGNIFICANT PROILEM FOR US. THE PACKAGE THEREFORE
PROVIDES A USEFUL EXTRA MEASURE OF PROTECTION FOR THE COMMUNITY'S
(INCLUDING THE UK'S) TEXTILE INDUSTRY,
12. THE FRENCH ATTITUDE IS NOT CERTAIN. THEY MAY ACCEPT THE
COMMISSION PACKAGE (PERHAPS WITH SOME SMALL CHANGES) AND REMO VE
THEIR ILLEGAL MEASURES WHILE AT THE SAME TIME CRUMBLING A LITTLE.
IF THERE IS A NEED FOR DETAILED DISCUSSION OF THE PACKAGE, IT IS LIKELY TO BE DEFERRED TO A WORKING GROUP WITH INSTRUCTIONS TO
REPORT BACK BY THE END OF THE COUNCIL.
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CONFIDENTIAL
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