TNAG-0628-FCO40-776-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 141

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INFO UKMIS GENEVA CAIRO RABAT AND TUNIS

MEDITERRANEAN GROUP: 7 JULY

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1. ANDRESEN (COMMISSION, DG VIII) REFERRED TO THE DECISION OF PRINCIPLE TAKEN BY THE COMMISSION WHICH HAD BEEN DESCRIBED TO THE

HE WAS COREPER EARLIER IN THE DAY (MY TELS NOS 4486 AND 4487). ONLY CONCERNED WITH THE THREE COUNTRIES FOR WHICH HE WAS RESPONSIBLE: MOROCCO, TUNISIA AND EGYPT WITH WHICH HE HAD BEEN INSTRUCTED TO INITIATE URGENT CONSULTATIONS. HE HAD ALREADY SEEN THE MOROCCANS. THEY HAD REACTED POSITIVELY THOUGH THEY HAD ASKED FOR FURTHER DISCUSSIONS ABOUT LEVELS AND HAD PROPOSED AUTOL IMITATION

HE WAS EASURES RATHER THAN IMPORT RESTRICTIONS BY THE COMMUNITY. PROPOSING TO SEE THE TUNISIANS ON 8 JULY. HE HAD ALSO ASKED THE EGYPTIANS TO COME FOR CONSULTATIONS BUT THEY HAD SAID THEY WOULD NOT BE READY UNTIL THE END OF NEXT WEEK. HE WOULD INSIST BUT DID NOT EXPECT SERIOUS CONSULTATIONS IN THE IMMEDIATE FUTURE. (THIS PREDICTION WAS CONFIRMED ON 8 JULY WHEN THE EGYPTIANS REFUSED TO ATTEND THE MEETING WHICH HAD BEEN PROPOSED).

2. THERE WAS LITTLE DISCUSSION. THE ITALIANS SAID THAT THEY WERE SURPRISED TO SEE THAT THE COMMISSION'S PROPOSALS PROVIDED NO SPECIAL MEASURES FOR ITALY. WE AND THE DUTCH AND GERMANS EXPRESSED GENERAL RESERVES ABOUT THE COMMISSION'S PROPOSED PACKAGE, BUT NO OBJECTIONS WERE RAISED TO THE PROPOSED CONSULTATIONS WITH THE THREE COUNTRIES CONCERNED.

3. IN REPLY TO A QUESTION BY THE UK ANDRESEN SAID THAT THE LEVELS WHICH THE COMMISSION WERE PROPOSING FOR THE COTTON

YARN RESTRAINT WITH EGYPT WOULD BE 107 PERCENT OF IMPORTS IN THE BASE REFERENCE PERIOD. HE DECLINED TO BE DRAWN ON THE COMMISSION PROPOSAL AS A WHOLE, SINCE THIS WAS NOT HIS RESPONSIBILITY. UNDERSTANDING WAS THAT THESE PROPOSALS WERE THE RESULT OF CONSULTATIONS WHICH HAD ALREADY TAKEN PLACE AND THAT THE

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