TNAG-0628-FCO40-776-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 37

IMMEDIATE

YPHER CAT A

GRS 280A

FROM FCQ

221745Z

CONFIDENTIAL

FRAME

[FILES]

DESKBY 230BOOZ

CONFIDENTIAL

MECUBED IN

RECI

*.51

2 & JUL 1977

HKK 121 / 616/1

TO IMMEDIATE UKREP BRUSSELS TELNO 1587 OF 22 JULY

AND TO PARIS

INFO IMMEDIATE UKMIS GENEVA PRIORITY OTHER EEC POSTS WASHINGTON

TOKYO

28

TEXTILES: RENEWAL OF THE MFA

1. MINISTERS HAVE NOW CONSIDERED THE COMMISSION'S APPROACH

AFTER MR DELL'S MEETING WITH COMMISSIONER DAVIGNON ON

19 JULY (MY TELNO 500 TO PARIS). PLEASE NOW SPEAK TO

DAVIGNON AS SOON AS POSSIBLE ON THE LINES OF PARAS 2 TO 4 BELOW,

2. MR DELL MADE CLEAR TO DAVIGNON THAT ESSENTIAL POINTS FOR

THE UK WERE THAT:

11.

!!!.

3.

THE BILATERAL NEGOTIATIONS MUST PROCEED ON THE

BASIS OF THE EXISTING EEC MANDATE IN FULL AND IN DETAILY

THE BILATERAL QUOTAS FOR SENSITIVE PRODUCTS

MUST BE CONSISTENT WITH THE COMMUNITY'S OVERALL CEILINGS:

THERE WOULD BE A CLEAR UNDERSTANDING THAT, IF THE RESULTS OF THE AUTUMN BILATERALS WERE UNSATISFACTORY, THE COMMUNITY

WOULD NOT RENEW THE MFA UNCHANGED AT THE END OF 1977.

COMMISSIONER DAVIGNON UNDERTOOK THAT THE COMMISSION WOULD

MAKE A PUBLIC STATEMENT TO WHICH BRITISH MINISTERS COULD REFER IN EXPLAINING THE SITUATION TO BRITISH INDUSTRY AND IN THE HOUSE. HE ALSO UNDERTOOK THAT THIS STATEMENT WOULD BE DRAFTED IN CONSULT- ATION WITH MEMBER STATES.

4 ON THESE BASES, UK MINSTERS CAN GO ALONG WITH THE COMMISSION'S APPROACH. HOWEVE, THEIR AGREEMENT IS FIRMLY CONDITIONAL ON:

1.

CLOSE CONSULTATION BY THE COMMISSION WITH MEMBER STATES THROUGH THE TEXTILES WORKING GROUP:

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