TNAG-0628-FCO40-776-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 20

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TO IMMEDIATE FCO TELNO 397 OF 25 JULY

26 JUL1977

INFO IMMEDIATE UKREP BRUSSELS.

HKK 121

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MY TELNO 06:/ MFA NEGOTIATIONS

1. PARAS 4 AND 5 OF MY TELNO 06. AT THE FURTHER CO-ORDINATION MEETING OF THE ARTICLE 113 COMMITTEE AT 2.30 PM ON JULY 22 TRAN (COMMISSION) REPORTED FURTHER CHANGES OF THE TRIPARATITE TEXT. THERE WAS NOW A JAPANESE PROPOSAL FOR FOR THE FIRST SUBSECTION OF PARAGRAPH 5, AS FOLLOWS:

QUOTE THE COMMITTEE AGREED THAT WITHIN THE FRAMEWORK OF THE MFA ANY SUCH CONSULTATIONS AND NEGOTIATIONS SHOULD BE CONDUCTED IN A SPIRIT OF EQUITY AND FLEXIBILITY WITH A VIEW TO REACHING A MUTUALLY ACCEPTABLE SOLUTION UNDER ARTICLE 4.3 OR ARTICLE 3 PARAGRAPHS 3 AND 4, ON THE BASIS OF A JOINTLY AGREED REASONABLE DEPARTURE FROM CERTAIN ELEMENTS IN PARTICULAR CASES UNQUOTE.

A FURTHER AMENDMENT TO LAST SENTENCE OF PARAGRAPH 5 HAD BEEN

PROPOSED THIS SENTENCE NOW READS :

QUOTE THE COMMITTE AFFIRMED THAT IN SEEKING SUCH SOLUTIONS THE INTERESTS OF THE DEVELOPING COUNTRIES, NEW ENTRANTS AND SMALL SUPPLIERS SHALL BE RECOGNISED.

2.

A DRAFT FOR PARAGRAPH 6 (THE NORDIC CLAUSE) HAD EMERGED AS FOLLOWS:

QUOTE THE COMMITTEE RECOGNISED THAT COUNTRIES HAVING SMALL MARKETS, AN EXCEPTIONALLY HIGH LEVEL OF IMPORTS AND A CORRESPONDINGLY LOW LEVEL OF DOMESTIC PRODUCTION, ARE PARTICULARLY EXPOSED

TO THE TRADE PROBLEMS MENTIONED IN THE PRECEEDING PARAGRAPHS, AND THAT THEIR PROBLEMS SHOULD BE RESOLVED IN A SPIRIT OF EQUITY AND FLEXIBILITY UNQUOTE.

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