TNAG-0628-FCO40-776-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1977 — Page 49

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TO IMMEDIATE PARIS TELNO 500 OF 20 JULY AND TO UKREP BRUSSELS INFO IMMEDIATE UKMIS GENEVA ROUTINE OTHER EEC POSTS, WASHINGTON TOKYO.

TEXTILES: RENEWAL OF THE MFA

1. COMMISSIONER DAVIGNON CALLED ON MR DELL ON 19 JULY TO EXPLAIN THE LATEST SITUATION. DAVIGNON STRESSED THE FOLLOWING POINTS : (A)

THE COMMUNITY WOULD NOT BE COMMITTED TO RENEWAL OF THE MFA UNLESS A SIGNIFICANT NUMBER OF BILATERAL AGREEMENTS HAD BEEN SATISFACTORILY CONCLUDED FULFILLING ALL THE OBJECTIVES IN THE MANDATE, BY THE END OF THE YEAR. HE RECOGNISED THAT PARAGRAPH 8 OF THE TEXT IN UKREP BRUSSELS TELMO 4691 WAS NOT CLEAR ENOUGH. HE HAD SUGGESTED A CHANGE TO MAKE THE POINT CLEARER (UKREP BRUSSELS HAVE NOW OBTAINED THE TEXTUAL CHANGES FROM DAVIGNON'S CABINET AND IT HAS BEEN RETAILED TO MEMBER STATES IN GENEVA).

(B)

PARAGRAPH 5 OF THE TEXT MADE IT CLEAR THAT THE COMMUNITY WOULD RECEIVE QUOTE THE GOODWILL AND INTENTIONS OF FLEXIBILITY OF SOME MAJOR EXPORTING PARTICIPANTS UNQUOTE IN THE BILATERAL NEGOTIATIONS. THE COMMUNITY WOULD ANNEX ITS OPENING STATEMENT TO THE GATT TEXTILES COMMITTEE IN GENEVA TO THIS TEXT, THUS MAKING SURE THAT ITS INTENTIONS WERE FULLY UNDERSTOOD, IT WAS IMPORTANT TO AVOID THE COMMUNITY'S STATEMENT BEING COUNTERED BY TOO MANY DECLARATIONS

FROM OTHER PARTICIPANTS IN THE TEXTILE COMMITTEE,

(C)

PARAGRAPH 5 ALSO MADE IT CLEAR THAT THE COMMUNITY WOULD BE

ENTITLED TO DEPART FROM THE RULES OF THE MFA IN NEGOTIATING ITS BILATERAL AGREEMENTS, IT WAS UNDERSTOOD THAT THE EXPORTERS WOULD NOT OBTAIN SATISFACTION FROM THE TEXTILES SURVEILLANCE BODY IF THEY

COMPLAINED ABOUT SUCH DEPARTURES.

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