TNAG-0628-FCO40-776-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 189

CONFIDENTIAL

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COUNCIL OF MINISTERS (FOREIGN AFFAIRS)

BRUSSELS, 3 MAY 1977

keep twis

NOTE

RECEIVED IN RECI., 57

& JUL 1977

HKK 12,

TEXTILES MPA

Discussion Document: Document S/670/77: Report from COREPER

74)

INTRODUCTION

1. The Council will be asked to decide the Community's mandate

on the problem of cumulative market disruption. The conclusion

of this one remaining issue would complete the Community's mandate and allow the Commission to speak in the GATT Textiles

Committee in Geneva. The Council has already had two unsuccessful attempts to reach a decision on this (8 March and 5 April). It is becoming ever more urgent for the Community to reach agreement. Further failure to do so will aggravete the situation in Geneva and also make it extremely difficult for the Community to renegotiate all its bilateral textiles agreements in time for new ones to come into force on 1 January 1978.

2. In practice the Council will be asked to decide only on

two questions:

(~)

(b)

should the Commission's mandate for Geneva be the globalisation proposals or the Commission proposals; should it be made clear in the Commission proposels

that stabilisation of import penetration will be

"at present levels".

UK OBJECTIVES

3. (a) To ensure that the Community, as represented by the Commission, is given a full and well defined mandate for early discussions in the Textiles Committee in Geneva;

(b) To ensure that, if the Commission's latest proposals are accepted as the Community's negotiating mandate on cumulative disruption, the Council recognises that other measures will need

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CONFIDENTIAL

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