TNAG-0628-FCO40-776-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 32

LEGAL DAS IS (PARAGRAPH 2)

THE COMMITTEE AGREED TO ADD A REFERENCE TO ARTICLE 113 OF

THE TREATY IN THE PREAMBLE. CASPARI SAID HE DID NOT CONSIDER

THIS NECESSARY BUT WOULD NOT OPPOSE THE CONSENSUS OF MEMBER STATES.

GOODS IN TRANS IT (PARAGRAPH 3 )

5.

LAMBERS (COUNCIL LEGAL SERVICES) SAID THAT, IN HIS VIEW, ARTICLE 2.1 OF THE COMMISSION REGULATION WAS NOT INCONS ISTENT WITH REGULATION 1439/74. IN ANY CASE THE COUNCIL COULD DECIDE TO DEROGATE FROM THIS REGULATION. KITTEL (GERMANY) MAINTAINED HIS RESERVE BUT SAID HE DID NOT THINK THIS WOULD PREVENT AGREEMENT ON AN OVERALL PACKAGE IF THE FRENCH AGREED TO DROP THEIR UNILATERAL MEASURES.

REDUCTIONS IN QUOTAS (PARAGRAPHS 3 11 AND 111)

5. CASPARI ARGUED THAT IT WOULD BE POLITICALLY IMPOSSIBLE TO

REDUCE THE PROPOSED QUOTA FOR EGYPTIAN COTTON YARN BELOW THE

LEVEL RESULTING FROM THE APPLICATION OF THE SAFEGUARD CLAUSE IN THE BILATERAL TEXT ILE AGREEMENT, AS THE FRENCH WISHED, EVEN

IF THIS WAS LEGALLY POSSIBLE UNDER THE PREFERENTIAL AGREEMENT

WHICH HAD ENTERED INTO FORCE ONLY ON 1 JULY. HE ADDED THAT THE

FIGURES PROPOSED BY FRANCE FOR SHIRTS FROM MOROCCO AND TUNISIA AMOUNTED TO 10% OF LAST YEAR'S QUOTA. THE CHAIRMAN PROPOSED THAT THE REDUCTIONS FOR MOROCCO AND TUNISIA SHOULD BE ACCEPTED BUT THAT

IN VIEW OF THE PARTICULAR DIFFICULTIES WITH EGYPT, THE FIGURE PROPOSED BY THE COMMISSION FOR EGYPTIAN COTTON YARN SHOULD BE

MAINTAINED. GOLDSMITH (UK) SAID WE COULD RELUCTANTLY AGREE TO THESE

REDUCTIONS PROVIDED WE HAD AN ASSURANCE FROM. THE COMMISSION THAT

THEY WOULD TAKE RAPID ACTION IN CASE OF DIVERSION OF TRADE. THE

COMMISSION DID NOT COMMENT. SCHEER (FRANCE) SAID THIS MATTER WOULD

HAVE TO GO TO THE COUNCIL.

ADDITIONAL MEASURES (PARAGRAPH 4)

7. CASPARI SAID THE PROPOSALS FOR ADDITIONAL MEASURES HAD BEEN

PRESENTED TOO LATE. SOME OF THEM WERE CERTAINLY NOT ACCEPTABLE.

FOR INSTANCE BENELUX IMPORTS OF YARN FROM SPAIN HAD FALLEN IN THE

2 RESTRICTED

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